CFO Exit to Dent Goldman Stock?
With shares of Goldman Sachs rising almost 30% in the last 3 months, what should you make of the big change just announced, in the firm’s executive suite?
On Tuesday, Goldman Sachs said longtime chief financial officer David Viniar will retire in early 2013 and the firm named Harvey Scwhartz as his replacement.
“Viniar has been the CFO since the company went public,” reminded Fast trader Tim Seymour, founder of EmergingMoney.com. “When a Wall Street legend leaves a company shareholders don’t applaud.”
And sentiment on the Street is “who’s Harvey Schwartz, his replacement” added Seymour.
"By contrast, Viniar has been with the company something like 32 years,” added Karen Finerman, president of Metropolitan Capital.
Should you take Viniar's exit as a sign that he’s worried about the new regulations that Goldman as well as other big banks such as Morgan Stanley, JPMorgan and BofA are all facing? Or if you're a trader, should you worry that Viniar's exit is a sign that Goldman is about to really sell-off?
Finerman said probably not. “If I had to guess, he’s probably thinking I’m not getting the top job and that’s what I really want. But that's a guess.”
However, that's not to say Viniar's exit isn't without consequence.
Considering shares have rallied sharply over the past few months Seymour added, “On the news I think the stock comes under a little bit of pressure. However, only a little pressure. I wouldn’t worry in a big way.”
Strategic investor Dennis Gartman agreed. “If there is a sell-off I wouldn't expect it to last long,” he said.
Posted by CNBC's Lee Brodie
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Trader disclosure: On Sept. 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Dennis Gartman is long GOLD; Dennis Gartman is long WHEAT; Dennis Gartman is long SOYBEANS; Dennis Gartman is long CS; Dennis Gartman is long AG; Dennis Gartman is short YEN; Dennis Gartman is short EURO; Karen Finerman is long AAPL; Karen Finerman is long BAC CALL SPREADS; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GM; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Keith McCullough is long GLD.
CNBC.com and wires