In another example of Wall Street’s self-loathing, Goldman Sachs cut rival Merrill Lynch to a “sell” rating and lowered its price target to $22 from $28.50. Goldman also added the stock to its Conviction Sell list.
Battered by more than $40 billion of write-downs tied largely to mortgages, analyst William Tanona expects Merrill will likely incur fresh write-downs, due to significant exposures to troubled assets such as collateralized debt obligations, mortgages and leveraged loans.
On past shows Fast Money's Karen Finerman has wondered if a broker downgrade such as this provides insight into both banks. She suggests it could be a reflection of what's happening inside the analyst's firm, in this case what's happening inside Goldman .
And that leads to our Fast Money Reader Poll.
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