Goldman woes pressure preferreds, common stock; U.S. Cellular active; M&T Bank deal quiet

By Stephanie N. Rotondo

Portland, Ore., May 12 - Goldman Sachs Group, Inc. was the day's "biggest loser," a preferred stock market source said Thursday.

The bank's series F preferreds fell 4 cents to $24.67, the series D preferreds fell 32 cents to $22.68, and the series A preferreds declined 39 cents to $22.78.

The declines came after Rochdale Securities LLC analyst Richard X. Bove said that there was growing pressure on the Department of Justice to bring charges against the investment bank for misleading clients in regards to its mortgage-related investments.

"It now appears that the pressure on the Justice Department to bring a criminal lawsuit against Goldman is building to a high pitch," Bove wrote in his report.

Goldman Sachs was one of three banks that a Senate investigative panel cited in a 650-page report on the financial crisis. The report indicated that the three banks intentionally misled investors and the government about their mortgage-related investments and how those investments played a role in the economic crisis.

Bove issued a "sell" rating on Goldman Sachs' stock, which fell 3.47%, or $5.13, to $142.75 (NYSE: GS).

Among recent new issues, United States Cellular Corp.'s new deal continued to do well.

The new issue market was surprisingly quiet, however, when it came to M&T Bank Corp.'s new $500 million issue of perpetual preferreds. That deal priced late Wednesday, but some in the market were having a hard time tracking it down.

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