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Goldman Sachs shares fall for a third straight session on Friday, bank’s compliance remains strong, CEO Solomon tells employees

According to a report by Reuters, citing a message sent to Goldman Sachs employees on Friday, the group’s Chief Executive David Solomon spoke in defense against criticism regarding Goldman’s compliance and oversight associated with operations with Malaysia’s 1MDB sovereign wealth fund.

Goldman Sachs shares closed lower for a third consecutive trading session in New York on Friday. It has also been the steepest daily loss since November 12th. The stock went down 4.96% ($8.36) to $160.05, after touching an intraday low at $159.42, or a price level not seen since September 30th 2016 ($157.80).

Shares of Goldman Sachs Group Inc have retreated 37.18% so far in 2018 compared with a 9.61% drop for the benchmark index, S&P 500 (SPX).

In 2017, Goldman Sachs’s stock rose 6.39%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

“We believe our culture and our processes around our due diligence and compliance was strong at the time, and is even stronger today,” David Solomon said in the video message, cited by Reuters.

“We will not allow the culture to be defined by those who break our rules and don’t uphold the values we hold dear,” he added.

The CEO’s statement came after on December 17th Malaysia’s government filed criminal charges against Goldman Sachs.

According to estimates by the US Department of Justice, high-level officials from Malaysia’s 1Malaysia Development Berhad (1MDB) and their associates misappropriated as much as $4.5 billion within the period 2009-2014.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $259.00, with a high estimate of $319.00 and a low estimate of $203.00. The median estimate represents a 61.82% upside compared to the closing price of $160.05 on December 21st.

The same media also reported that 16 out of 29 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 10 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Goldman Sachs Group Inc (GS) are presented as follows:

Central Pivot Point – $164.77
R1 – $170.13
R2 – $180.20
R3 – $185.56
R4 – $190.91

S1 – $154.70
S2 – $149.34
S3 – $139.27
S4 – $129.19

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