The slide in Goldman Sachs shares, which dropped by more than a third in the fourth quarter of 2018, “seems to more than adequately discount the underlying risk” the banks faces related to the 1MDB scandal, ’s Keith Horowitz said in a note to clients on Friday.

What’s new. Horowitz put together an analysis of the claims made against the bank in connection with its role in underwriting three bond issuances totaling $6.5 billion for 1 Malaysia Development Berhad, a Malaysian government investment vehicle. He concluded that...