Goldman Sachs Shares Rising on SEC Settlement, Upgrade
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Goldman Sachs (GS
) shares have jumped some 4.7% in pre-market trading Friday to around $152. Shares closed at $145.22 Thursday, already up 4.4% in anticipation of a pre-announced press conference. Goldman has reached an agreement
with the Securities and Exchange Commission, and will pay a record $550 million settlement over fraud claims linked to the subprime mortgage investment known as Abacus.
Bank of America Merrill Lynch upgraded Goldman Sachs
to buy from neutral following the settlement, and lifted its price target for the stock to $182 from $160. The broker said the probability of other significant legal issues arising from the mortgage debacle is very low, according to MarketWatch
Goldman shares have fallen some 14% so far this year.