More talk of gigantic bonuses landed Goldman Sachs

GS loading...

Quote  |  Chart  |  News  |  Profile

[GS  Loading...      ()   ] in the headlines again, this time it's CEO Lloyd Blankfein who's under the microscope.

According to the London press, Blankfein could be looking at his biggest bonus, ever.

"Mr Blankfein took home his biggest bonus so far in 2007, when he was paid $67.9 million," the paper says, "but Goldman’s profits last year were $1.8 billion higher than in 2007."

(GS) Loading...       (%)

As a result, Blankfein “could receive up to $100 million” in total compensation, the paper concludes.

That kind of money is certain to draw the ire of Main Street not to mention Capital Hill.

But Fast Money veteran trader Gary Kaminsky keeps his ear the ground and he tells the desk that the TimesOnline got it all wrong.

“I’ve had a couple conversations and I’m hearing that Blankfein’s bonus will be a fraction of that number,” says Kaminsky on the Halftime Report.

”It will seem like a big number to people on Main Street but on Wall Street it will seem like a bargain.”

However that’s not the only speculation involving Goldman. There’s also talk that the bank wants to buy back shares – perhaps even go private.

”I expect these guys to use increased capital to reward shareholders,” adds Kaminsky. “But I don’t know what they’ll do because they don’t know yet.”

What's the trade?

If you’re an investor who feels Goldman sold-off on the bonus news, then this may be a buying opportunity, says Kaminsky. But I’d want to go short something against it as a pairs trade.

From a technical perspective, $168 is where Goldman Sachs broke down and I don’t think it recaptures that level, says Todd Gordon on Forex.com on the Halftime Report.

 

FAST MONEY // Latest Rapid Recap

Go to Main Page

 

Current DateTime: 08:39:20 10 Feb 2012
LinksList Documentid: 26256943

• • Special Feature: Wall Street History - How Wall Street Got Its Name
  • Gene Munster Expects Apple Growth, Dividend
  • LinkedIn CEO Calms Post-Lockup Concerns
  • Anthony Scaramucci: S&P 500 Stocks Still Cheap
  • Home Builder Optimism Up, Industry Expert Says
  • Chart Patterns Suggest Pullback at Hand
  • UPDATE: Massive Trend Just Getting Underway in Financial Services: Finerman
  • Terranova: Beware Nuance Play On Apple Spike
  • Top Fashion Stocks for 2012
  • Pros Bullish On Visa, Even After It Hits a New High

Current DateTime: 08:39:20 10 Feb 2012
LinksList Documentid: 26256941

• Super Traders Slideshow
• Daily Poll: Tell Us What You Think!
• Word On The Street

______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .

Trader disclosure: On February 1st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Is Short (IJR), (IWM), (SPY), (MDY), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (KFT), (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (BSX); Najarian Owns (AAPL) Call Spread; Najarian Owns (AKAM) Call Spread; Najarian Owns (BP), Is Short (BP) Calls; Najarian Owns (ITMN) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (PFE); Najarian Owns (XLF) Calls; Najarian Owns (STLD) Calls; Terranova Owns (XLF) Calls; Terranova Owns (BAC), (JPM), (XOM), (HAL), (OIH), (FCX), (GOOG), (EMC), (DELL), (MSFT), (QCOM); Terranova Is Long British Pound March Futures

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 (XLP)
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)

Other Relevant Disclosures:
Terranova Owned (FCX) On 1/29/10

CNBC.com with wires