GOLDMAN JUMPS ON BUFFETT INVESTMENT
Shares of Goldman Sachs enjoyed a modest bump after investors learned that Warren Buffett had invested $5 billion in the firm. Many take the move to signal a vote of confidence in the bailout plan before Congress.
When Goldman got Warren Buffett to invest, they didn’t get just anyone. They got a name that everyone loves, explains Pete Najarian. That has a lot of value.
In an interesting twist, an unusual surge in Goldman Sachs' share price in the last 10 minutes of trading on Tuesday raised eyebrows on Wall Street, as it came two hours before news of Warren Buffett's big investment in the bank.
Goldman Sachs shares rose more than $5 heading into the close of trading even as the rest of the market tumbled, leaving traders suspicious that inside information was used to make a profit.
"Obviously someone knew the Buffett news that was coming out. I noticed it yesterday and I was telling my colleagues something is going on with Goldman," said Dave Rovelli, managing director of US Equity Trading at Canaccord Adams in New York.
"That was insider trading and market manipulation," exclaims an irritated Jeff Macke. "Somebody had some information that you didn’t and they took advantage of you. I don’t understand why more people aren’t outraged!"
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Trader disclosure: On Sept 24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (CY), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BBBY) Put Spread; Najarian Owns (BIIB) Calls; Najarian Owns (MS) And (MS) Puts; Najarian Owns (NOK); Najarian Owns (RIMM) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) Call Spread; Finerman Owns (GS); Finerman's Firm Owns (DELL), (JNJ), (MSFT), (NOK), (SUN), (TSO), (VLO), (WM); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF)
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