On the Line: GFI Group CEO Mike Gooch
It seems like brokerage stocks getting killed everywhere. But then, GFI Group was up eight points on Friday. Apparently these stocks aren’t created equal.
Chairman and CEO Mickey Gooch said that as the middle in the market, GFIC actually benefits from all the volatility.
GFIG’s customers are big banks and securities houses that trade hundreds of millions of dollars at a time. And if these guys are worried about their subprime exposure, they can buy GFIC’s credit default protection. The OTC derivatives market is “incredibly deep,” Gooch said, so a lot of debt can be laid off.
“If you really think that people are worried and they need to lay off risk after the disaster that was Merrill Lynch, this is who they go to,” Cramer said. “It’s who you should go to,” too.
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