Exchange traded funds (ETFs) tracking the financial sector were set to extend their losing streak on Thursday after a Senate panel released a scathing report on Goldman Sachs’ role in the financial crisis.
The $8.6 billion Financial Select Sector SPDR Fund (NYSEArca: XLF) was down 1% in early trading Thursday.
The Senate subcommittee is urging the Justice Department to investigate Goldman CEO Lloyd Blankfein’s testimony before Congress, MarketWatch reported.
Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, accused Goldman of profiting at clients’ expense as the mortgage market virtually ground to a halt in 2007. “In my judgment, Goldman clearly misled their clients and they misled Congress,” Levin said, according to Reuters.
The financial ETF lost nearly 1% on Wednesday, following J.P. Morgan shares lower after the bank reported quarterly earnings. Investors will be looking for quarterly results from Bank of America on Friday.
The financial-sector portfolio dropped below its 50-day moving average this week. Goldman Sachs is a top holding at 4.4% of the ETF.
Financial Select Sector SPDR Fund
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