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Current DateTime: 11:27:53 23 Aug 2011LinksList Documentid: 38910464Expiration DateTime: 8/23/2011 11:30:44 AM
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Current DateTime: 07:08:55 23 Aug 2011LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 07:07:19 23 Aug 2011LinksList Documentid: 38852222John Carney
Runs this joint.
Cadie Thompson
Really, really runs this joint.
Kate Kelly
Reports on the major Wall Street firms, trading, and regulation.
Jeff Cox
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
Lori Spechler
A Senior Editor at CNBC, commodity trader in a former life.
Lori Ann LaRocco
A Senior Talent Producer at CNBC.
Nicole Lapin
Runs the graveyard.
Current DateTime: 07:07:19 23 Aug 2011LinksList Documentid: 43730562The Greatest Trades of All Time
The following list of people showcases some of the greatest trades in the business.
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Current DateTime: 11:27:43 23 Aug 2011LinksList Documentid: 38910635Expiration DateTime: 8/23/2011 11:30:35 AM
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setDefault('cnbc_textbody');Shares of Goldman Sachs Are Priced Wrong Published:
Tuesday, 23 Aug 2011 | 10:22 AM ET Text Size By: John CarneySenior Editor, CNBC.com
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Getty ImagesThe Goldman Sachs booth on the flo
Really, really runs this joint.
Reports on the major Wall Street firms, trading, and regulation.
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
A Senior Editor at CNBC, commodity trader in a former life.
A Senior Talent Producer at CNBC.
Runs the graveyard.
The following list of people showcases some of the greatest trades in the business.
What happens now that the U.S. has been downgraded.
Greece begins to confront the true reality of austerity.
Some words of wisdom for all the Wall Street Interns this summer.
Stay up to date with NetNet.
Getty ImagesThe Goldman Sachs booth on the floor of the New York Stock ExchangeShares of Goldman Sachs slumped badly Monday after we learned that Goldman's chief executive had lawyered up. One thing I am certain of today is that Goldman's shares are mispriced.
And that mispricing means investors have opportunities to make money.
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Chief Executive Lloyd Blankfein has hired Reid Weingarten, one of Washington, D.C.'s top white-collar criminal defense lawyers. Various news organizations are reporting Tuesday that Goldman President Gary Cohn and Chief Financial Officer David Viniar have also hired private lawyers.
No doubt some investors thought it made sense to sell Goldman shares for the simple reason that another risk-factor data point had been introduced. If you were weighing whether to own Goldman stock or not, the reminder that executives at the company are facing serious government inquiries may be enough to tip you into the "sell" camp.
The reaction of investors to this news is far from irrational.
RELATED LINKSCurrent DateTime: 07:08:36 23 Aug 2011LinksList Documentid: 44241134Why Did Goldman Sachs' CEO Hire Outside Counsel?Does Summer Time Feed Rumors?
Government investigations can be a costly distraction for company executives. We know that the Justice Department and the Manhattan district attorney have been looking into Goldman. There are countless private suits. No doubt there is at least a couple of investigators from the New York State Attorney General's office, which has files open on Goldman.
You can imagine that this sort of thing makes it hard to effectively negotiate difficult market conditions. So why not sell?
To the extent that there is a lot of uncertainty here, the shares are pricing in that kind of uncertainty. But you don't have to own the shares, or short them
span#ExplainsLink a, span#ExplainsLink a img, span#ExplainsLink a:visited img, span#ExplainsLink a:visited {border:none;}
. You don't have to decide in advance which way the market will go.
One of two things are going to happen. Either these investigations will lead to serious charges (in which case Goldman's stock goes way down) or they won't (in which case Goldman's shares will likely rise sharply). An investor could make a lot of money using options
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to bet on future volatility in Goldman shares.
There will be a lot of money made on Goldman's shares. I spoke to a small hedge fund manager Tuesday who is hoping it will be him. (He asked me not to name him because he worries about retaliation from Goldman.)
"I'm not betting against Goldman or for Goldman. I'm betting against $106," he said, citing the closing price Monday.
RELATED LINKSCurrent DateTime: 07:08:36 23 Aug 2011LinksList Documentid: 44241134Why Did Goldman Sachs' CEO Hire Outside Counsel?Does Summer Time Feed Rumors?
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