Could Deal Be Dead?

After hours Senator Richard Shelby dropped a bombshell on the market and said he wasn’t sure a government bailout was at hand. The ranking Republican on the Senate Banking Committee said, “there are still a lot of different opinions.”

According to CNBC’s Charlie Gasparino, Sen. John McCain is also unhappy with the bailout plan. Gasparino tells us this deal could be dead. The devil is in the details, he adds.

The Dow had closed higher snapping a three-day losing streak on the hope a $700 billion bailout plan would pass by the end of the week.

Sticking Points

Specific sticking points that surfaced earlier Thursday include whether warrants will be issued. That’s basically a mechanism that brings any profits made on the bailout back to tax payers. Democrats want them and Republicans seems to be divided. (The concern is that some banks might not participate in the bailout because of the provision.)

Also there were concerns about how to accommodate people who lose their homes because they owe more than they're worth.

It’s not good, says a clearly outraged Jeff Macke.

Something needs to happen before Monday, adds Pete Najarian. The idea that the government would intervene is what stopped the bleeding in the first place.

If this were a risk arb deal, I would say the deal is in trouble, Karen Finerman adds. 

All Hope Is Not Lost

According to CNBC's John Harwood, Richard Shelby is in the minority in his opposition to the plan. Harwood hears that 40 out of 49 Republican senators are prepared to support the package. It’s the House where there could be trouble.

Rep. Peter King thinks that we're rushing to conclusions. On Fast Money he reminded the traders that Dick Shelby has been opposed to the whole concept of a bailout from the start. King still believes a deal is at hand.  

Trading Through The Turmoil

And if you’re trading this market Thursday provided an excellent opportunity to get smaller, Karen Finerman counsels. If you had some longs it was time to get out. I sold my position in retail. And I took back my protection on the iShares Dow Jones US Real Estate . Basically I’m shrinking and taking less risk on either side.

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] 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 Sept 25, 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), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (MSFT), (NUE), (INTC); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (WM), (DELL), (PM); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Najarian Owns (NOK); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BBBY) Put Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (XLF) Call Spread

GE Is The Parent Company Of CNBC

CNBC.com with wires