Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled bank holding giant Goldman Sachs (NYSE: GS) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Goldman's business and see what CAPS investors are saying about the stock right now.

Goldman Sachs facts

Headquarters (Founded)

New York City (1869)

Market Cap

$78.2 billion

Industry

Investment banking and brokerage

Trailing-12-Month Revenue

$48.5 billion

Management

CEO Lloyd Blankfein (since 2006)
COO Gary Cohn (since 2006)

Return on Equity (Average, Past 3 Years)

18.4%

1-Month Return

(15%)

Competitors

JPMorgan Chase (NYSE: JPM)
Morgan Stanley

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 13% of the 5,979 members who have rated Goldman believe the stock will underperform the S&P 500 going forward. These bears include All-Star dmbeach and geronimo21.

Just last month, dmbeach touched on Goldman's tarnished image: "I don't think the damage is done. This scandal is going to cause critical damage to the firm's reputation. ... Things are going to get much worse before they get better."

In a reply pitch from two days later, geronimo21 echoes that bearish sentiment:

The subtlety of the word "fraud" seems lost on the defenders of [Goldman]. Fraud means the dice were loaded, the fix was in. No matter how sophisticated the investor may be, he'll lose because the deck is stacked. For the SEC to charge fraud means they have to be able to see into the mind of [Goldman], which means they have to have hard evidence, preferably documentary, that [Goldman] knew the punters were going to lose to Paulson. Two of the biggest were the UK's [Royal Bank of Scotland (NYSE: RBS)] and Germany's IKB who paid over $1 billion to close their losing positions.

Never mind a $1 billion fine. RBS, IKB and anyone else who's lost on a GS issued CDO will be in there. ... That alone could cost [Goldman] a minimum $3 billion for just two customers.

What do you think about Goldman, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.