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Shares in Goldman Sachs, the Wall Street investment bank, on Tuesday surpassed the record closing high they set in 2007 before the plunge that was ignited by the ensuing financial crisis.
The shares were up as much as much as 1.3 per cent on Tuesday to $248.79, above the previous closing peak of $247.92 that was struck on October 31, 2007. However, they were still slightly short of the intra-day high of $250.70 struck on the same day.
The date may bring back grim memories in investors’ minds since it was less than half a year before the near-collapse of Bear Stearns, the once venerable investment bank that was bought in a fire sale by JPMorgan Chase in March 2008.
Just a few months after that, in September, Lehman Brothers declared bankruptcy in a moment that ricocheted across global financial markets and marked the height of the worst financial crisis since the Great Depression.
Goldman’s shares bottomed in November 2008 at $52 each, meaning the group has rebounded by almost five-fold since then.
The latest leg higher for Goldman, and many other financial stocks, has come amid expectations that the Trump administration and a Republican Congress will loosen regulations on the industry. A steepening of the yield curve since Mr Trump’s election, along with expectations of more vigorous economic growth, have also been a boon to the sector.