Financial exchange traded funds were slightly lower Friday as investors digested news Goldman Sachs (NYSE: GS) is bracing for subpoenas from U.S. prosecutors while JP Morgan’s (NYSE: JPM) chief executive warned of the consequences of the U.S. defaulting on its debt.
Reports Friday that Goldman Sachs expects to get subpoenas related to its mortgage businesses are a reminder that underperforming financial exchange traded funds continue to face regulatory uncertainty. Goldman shares were fractionally lower. [Goldman Legal Woes a Reminder of Financial ETFs’ Headline Risk]
Separately, JP Morgan CEO Jamie Dimon said the effects of the U.S. defaulting on its debt would be potentially catastrophic, the Associated Press reported. “It will dwarf Lehman,” Dimon said, according to the report.
Financial Select Sector SPDR Fund (NYSEArca: XLF) slipped 0.3% on Friday morning.
Financial Select Sector SPDR Fund
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