Goldman Sachs Loses on Wall Street Due to Hedge Fund Problems
The American bank Goldman Sachs was a notable fall at the opening of the stock exchanges in New York on Monday.
Just like international peers Nomura and Credit Suisse, the bank is dealing with problems regarding the settlement of transactions involving hedge fund Archegos Capital Management.
Credit Suisse and Nomura previously warned of significant losses from the issues. Goldman told shareholders the problems are likely to be “minor”. Investors were equally shocked and put the stock down 1.7 percent.
Attention was also paid to the aviation sector. Boeing announced that it had received an order from Southwest Airlines (plus 0.6 percent) to deliver one hundred 737 MAX aircraft. In addition, an option was agreed for an additional order of 115 additional aircraft. Boeing won 2.7 percent.
Aircraft leasing company Fly Leasing won 25 percent. Investor Carlyle Group takes over the company. In addition, American Airlines lost 0.6 percent despite reports of an increasing number of bookings. They would approach pre-crisis levels.
Furthermore, Google parent Alphabet fell 0.5 percent and social media company Facebook rose 2 percent. The companies unfolded plans to invest in cables between the United States and Southeast Asia.
Attention was also paid to credit card company Visa (minus 0.5 percent). The company will allow the use of cryptocurrency USD Coin to process transactions on its payment network. With this, digital coins, of which bitcoin is the best known, are gaining ground in further acceptance by mainstream financial institutions. Bitcoin gained nearly 6 percent in value to more than $ 58,000. Other crypto coins were also on the rise.
The leading Dow Jones index lost 0.1 percent to 33,044 points. The broad S&P 500 fell 0.2 percent to 3965 points, and tech gauge Nasdaq lost 0.3 percent to 13,100 points.