Bankster gets subpoenaed.....stocks drop: Wall Street and accountability don't mix [View All]

[marmar]

June 7 (Bloomberg) -- U.S. stocks retreated, erasing an early advance, as financial shares slumped after Goldman Sachs Group Inc. was issued a subpoena from the Financial Crisis Inquiry Commission.

Goldman Sachs fell as much as 1.1 percent after the FCIC said the subpoena was issued because the investment bank hasn’t complied with requests for documents. Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. also dropped. Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. declined as metal prices slumped. Bristol-Myers Squibb Co. jumped 7.2 percent after Goldman Sachs raised its rating to “buy.”

The S&P 500 slipped 0.3 percent to 1,061.47 at 11:02 a.m. in New York. The Dow Jones Industrial Average decreased 23.88 points, or 0.2 percent, to 9,908.09.

“It’s a surprise why Goldman wouldn’t comply; it’s an easy thing and it makes you wonder why,” said Matt McCormick, a portfolio manager at Cincinnati-based Bahl & Gaynor Inc., which has $2.8 billion under management. “If you get surprising bad news, which I would call this Goldman thing, the market doesn’t like it. But the market is also digesting the payroll numbers and concerns that our economy is not picking up.”

U.S. stocks fell last week as lower-than-estimated jobs growth and a worsening government debt crisis in Europe fueled concern the global economic recovery will slow. The S&P 500 tumbled 2.3 percent to 1,064.88 and the Dow retreated 2 percent to 9,931.97 last week, the lowest level since Feb. 8. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=afgPs.bbsCuQ&pos=1