Goldman shares rise on false SEC settlement rumor
NEW YORK (Reuters) – Goldman Sachs Group Inc shares rose as much as 5.4 percent on Friday on rumors of a possible settlement with regulators and a feeling that the stock could be oversold.
The shares were up 3.5 percent at $140.80 in afternoon trading on the New York Stock Exchange, off an earlier high at $143.44. Goldman’s share rise came as bank stocks reversed losses and rose shortly after the open.
Goldman shares were further helped by a broader rally that sent the KBW Banks index up 2.6 percent. Goldman’s rival Morgan Stanley was also up, gaining 4.84 percent.
Goldman Sachs and the SEC declined to comment.
But Washington sources familiar with the matter said the SEC and Goldman Sachs have not reached a settlement.
Are you really in the business of publishing unfounded rumors now?
No, we are in the business of publishing news.
When there is dramatic movement in a stock that is news, and we report on it.
In this instance we said the rise was caused by these rumors, that Goldman Sachs and the SEC had declined to comment, and that Washington sources said no settlement had been reached.
If you’re interested, here are our guidelines on reporting rumors: GBU Editor
Traders work at the Goldman Sachs stall on the floor of the New York Stock Exchange, May 20, 2010. REUTERS/Brendan McDermid