It looks like Morgan Stanley has finally got one up on Goldman Sachs . And what happened has the Street talking.

This week, the Treasury appointed Morgan Stanley to handle the sale of its 27% stake in Citigroup, that’s according to the Financial Times.

Although that’s a coup in its own right – what makes it all the more interesting is that the government turned down a similar offer from Goldman Sachs – and the Goldman guys were willing to do it for free – that little nugget comes from the Washington Post.

Although Morgan Stanley has previously worked with the government (on asset disposals by insurer AIG) the decision sent the Street buzzing with speculation that Goldman has become a victim of too much bad press.

From the record bonuses to the reported bets against Greece, is Goldman no longer golden?

Fast Money’s ‘The Hedge’ otherwise known as Anthony Scaramucci of Skybridge keeps his ear to the ground. He tells the desk from all that he's hearing, it appears Goldman is unfashionable inside the beltway.

“If you’re going to bid zero and the government says ‘no’ despite a giant deficit somebody is trying to vote you off the island,” says Scaramucci

What’s the bottom line?

I expect the bad PR will compress the multiple of Goldman Sachs going forward, says Scaramucci.

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Trader disclosure: On March 30th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (IPI) Call Spread; Najarian Owns (MRVL); Najarian Owns (CLF) Call Spread; Najarian Owns (YUM) Call Spread; Najarian Owns (DOW) Call Spread; Finerman's Firm Is Short (IYR), (IWM), (SPY), (MDY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Preferred; Finerman Owns (BAC), (BAC) Leaps; Finerman's Firm Owns (FLIR); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (GGP); Finerman's Firm Owns (NOK), (OSIP); Finerman's Firm And Finerman Own (WFC); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Is Short (EL); Terranova Is Short (GS); Terranova Is Short (CAL); Terranova Is Short (UAUA); Terranova Is Long May 2010 Crude Oil Futures; Cortes Is Short Euro; Cortes Is Short Treasuries; Cortes Owns (IWM), (IBB) vs. Short S&P; Edwards Owns (TM), (UUP)

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