Goldman equity tanks as fears grow over Morgan Stanley

Shares in former investment banks Goldman Sachs and Morgan Stanley have slid today during volatile trading, despite credit default swap (CDS) spreads on the two firms marginally narrowing .

At the close of trading in New York, Goldman Sachs saw $12.55 shaved off its market value to finish the day at $88.80, although the firm saw its value fall as low as $74-a-share a little before midday.

Morgan Stanley, facing questions about its long-term viability following indications from ratings agencies that a downgrade could be forthcoming, saw its equity hit an intraday low of $6.71 before rallying to end the day at $9.68 – down $2.77 from the previous close.

The declines end a remarkable

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