Blackstone Comeback?

Is Blackstone about to make a comeback?

They're certainly saving money on founder and chairman Stephen Schwarzman's salary; he's taking a 99% pay cut.

Schwarzman -- who had celebrated his 60th birthday with a $3 million party in 2007 -- did not receive any cash compensation for 2008 other than a base salary of $350,000.

($350,000 probably sounds like a lot of money. But this is the same guy who made headlines last year when he gave the New York Public Library $100 million. So to him, it’s a drop in the bucket.)

Blackstone has been hammered by the financial crisis and banks reluctance to lend. A revival in lending is vital for the New York-based firm to be able to do deals of any significant scale and sell off current investments.

In fact, Blackstone shares have fallen to a fraction of their June 2007 initial public offering price of $31.

What's the trade?

"Options action suggests to me that this private equity firm could start turning during the next quarter," says Pete Najarian.

“As credit begins to ease it seems to me Blackstone could be sitting in the sweet spot. They’ve got $25 billion dollars in dry powder out there looking,” he says.

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Trader disclosure: On Mar. 3rd, 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 (MS), (TM), (AAPL), (MOS); Macke Owns (GE) Puts; Seymour Owns (EEM), (BAC), (FXI); Seymour's Firm Owns (BIDU), (COP); Najarian owns (GDX), (PALM), (BX); Najarian Owns (DNA) Calls; Najarian Owns (DOW) Call Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (GE) Put Spread; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MOS) & (MOS) Calls ;Najarian Owns (V) & (V) Calls; Finerman's Firm Owns (PBR), (RIG); Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (BAC), (BBT), (VNO)