Credit - Bloomberg
Goldman Sachs Group Inc. soared in the months after US President Donald Trump’s election in 2016, enriching shareholders and its staff. That so-called Trump Bump is now almost gone.
Wednesday 05, December 2018
(Bloomberg)--The stock has tumbled 33 per cent from a record high in mid-March, eroded by a broader market slump and troubles specific to the firm. About half of the decline occurred in the past month, as investors worried about the costs and reputational damage the investment bank may incur over its involvement in Malaysia’s 1MDB corruption scandal.
After Trump’s election, investors bet Goldman Sachs would thrive as its alumni joined an administration vowing to ease regulation and slash corporate taxes. That ended as Trump embarked on a trade war with countries including China. Now, if its stock slips just 1.3 per cent Goldman will be the only major US investment bank to see its entire bump disappear.