(Bloomberg) -- Goldman Sachs Group Inc (NYSE:GS). stock has tumbled as Malaysia stepped up pressure on the bank and is seeking a full refund of fees it paid for 1MDB deals.
There’s probably little Goldman can say to soothe investor fears that a full-blown investigation with fines is possible, Keefe, Bruyette & Woods analyst Brian Kleinhanzl wrote in a note. Recent developments confirm that concerns about the scandal “are more than just noise,” he said. The potential financial impact and reputational damage are “nearly impossible to quantify at this point in time,” while the $600 million in fees the bank earned from work completed for 1MDB “is certainly at risk.”
The stock valuation may stay “depressed” until Goldman reveals more information; “The ultimate question is who knew what and when regarding 1MDB and that question remains open ended for now.” Goldman shares were up 0.5 percent in pre-market trading at 6:40 a.m. New York time, possibly buoyed with the rest of the market as futures rose on trade talk hopes.