Goldman shares tumble as 1MDB pressure mounts

Goldman Sachs Group (GS) Inc.'s shares hit the lowest in almost two years Monday, after Malaysia's finance minister said the nation would seek a "full refund" over bond deals for its sovereign wealth fund that have landed Goldman Sachs in the midst of globe-spanning corruption probes.

"Plenty of negative headlines" are weighing on investors' minds when it comes to the bank, KBW analyst Brian Kleinhanzl wrote in an email.

Last week, at least three senior Goldman bankers were implicated by the U.S. Department of Justice in a multiyear criminal enterprise that included bribing officials in Malaysia and elsewhere and laundering hundreds of millions of dollars. The firm has said it's cooperating with the investigations and may face "significant" fines.

Malaysian Finance Minister Lim Guan Eng on Monday said the country is seeking a refund of all the fees it paid to Goldman for arranging as much as $6.5 billion in debt in 2012 and 2013, as Goldman has "admitted culpability" after former banker Tim Leissner entered a guilty plea for his role in the scandal. Goldman Sachs hasn't publicly admitted any wrongdoing. A spokesman for the bank declined to comment Monday on Mr. Lim's remarks.

The firm's shares declined as much as 7.5% on Monday, putting the stock on pace for its worst two-day performance in more than eight years. The shares fell 7.1% at 2:55 p.m. EST to the lowest since November 2016.