Goldman Cut to 'Neutral' by Whitney

Shares of Goldman Sachs were cut to "neutral" from "buy" by Meredith Whitney Advisory Group, published reports said Tuesday.

Goldman Sachs releases its third-quarter earnings report Friday and rivals are going to watch it closely not just because of the bank's profit but also to see how it will deal with the public relations dilemma of distributing bonuses one year after receiving billions of dollars in government aid.

In mid- July, Whitney gave Goldman a "buy" recommendation, saying the bank was in for a hugely profitable quarter.

On September 10, Whitney said another leg down was coming for stocks but that Goldman Sachs still had "gas in the tank" and she kept her "buy" rating on its stock. "Goldman is taking a lot of the place that Lehman left," Whitney said.