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Bank Reform To Spark Bold Move By Goldman?

As you know veteran trader Gary Kaminsky keeps his ear to the ground. And he’s hearing some interesting chatter about Goldman Sachs.

Speculation has been swirling that Goldman Sachs may give back its bank charter.

But Kaminsky says it’s absolutely not true.

The market rumor took hold earlier in the week after Deputy Treasury Secretary Neal Wolin said – under the new bank reform plan -- financial firms will need to choose between being a bank with insured deposits or engaging in proprietary trading activities.

That triggered the chatter – partly because Goldman’s deposits are a relatively small portion of its overall funding base. Also it would free them from regulatory scrutiny and higher capital requirements.

Although they may seem like a compelling reasons for Goldman to give back the bank charter Gary Kaminsky says it's not even on the table.

“I spoke to people there and that’s not happening,” Kaminsky tells the desk.
How come?

“The government doesn’t want them to do it.” In light of that “there’s no way they’ll do it,” Kaminsky says.

But that’s not the only speculation swirling around this name.

Investors are also buzzing about another course of action -- going private.

"Goldman is already in the process of figuring out how to go private," says Tom Sowanick, chief investment officer of the Omnivest Group in Princeton, in a Reuters interview. "Goldman did not need -- or want the TARP money to start with -- and there is no reason for them to keep their bank charter and remain a public company."

And as you might know Fast Money friend Doug Kass, president of Seabreeze Partners, has made Goldman going private among his "20 Surprises for 2010."

Kass predicts: "Sick of the unrelenting compensation outcry, government jawboning and associated Populist pressures, Warren Buffett teams up with Goldman Sachs to take the investment firm private."

What do you think? We want to know!


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Trader disclosure: On January 29th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (IBM), (KFT), (MSFT), (WMT); Finerman's Firm And Finerman Own (RIG); Finerman's Firm Owns (PLCE); Seymour Owns (AAPL), (BA), (F), (INTC), (PBR); Terranova Owns (BAC), (JPM), (XOM), (HAL), (OIH), (FCX), (GOOG), (FMC), (AAPL), (DELL), (MSFT), (QCOM); Terranova Is Long March British Pound Futures; Terranova Owns (XLF) Feb. Calls; Terranova Is Short (AAPL) Feb. Calls

For Tim Seymour
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (POT)
Seygem Asset Management Owns (FCX) Calls
Seygem Asset Management Owns (PBR)

For Joe-Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Brian Stutland
Stutland Owns (XOM)
Stutland Is Short (SPY) Directional Position, Long Volatility
Stutland Is Long VXX
Stutland's Firm Is A Market Maker In VIX And SPX
Stutland's Firm Is Short VIX Directional Position, Short Volatility
Stutland's Firm Is Short S&P 500 Directional Position, Short Time Spreads

Other Relevant Disclosures:
Seymour Owned (GOOG) On 1/21/10
Terranova Was Short Feb. Crude Oil Futures On 1/11/10
Finerman's Firm Owned (AXL), (AXL) Calls On 1/8/10
Kaminsky Was Short (QQQ) On 1/7/10
Terranova Was Short Feb. Crude Oil Futures On 1/11/10
Finerman's Firm Owned (TGT), (TJX) On 1/12/10



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