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The Obama Trade: Wall Street Crackdown

It appears Dems in the Senate may have overcome a setback, and are now one step closer to a Wall Street crackdown.

In an unusual move that cuts a senior Republican out of the loop, negotiations have resumed on financial regulation reform but not with Richard Shelby, the ranking Republican.

Instead, Committee chairman Christopher Dodd, a Democrat, said in a statement that he has begun talks on legislation with Bob Corker, a first-term Republican member of the panel.

And Corker tells CNBC that he is willing to work with Democrats on financial reform, saying it is "a piece of legislation that needs to be passed." He said the Dodd-Shelby impasse would lead "toward a legislative train wreck."

Just six days ago, Dodd said he had hit an impasse with Senator Richard Shelby, the committee's top Republican, in talks under way for more than a year.

The Obama administration has made tighter financial regulation a top priority for 2010. The U.S. House of Representatives approved a reform bill in December over the objections of Republicans and bank lobbyists.

"I am more optimistic than I have been in several weeks that we can develop a consensus bill to bring about the reforms the financial sector so desperately needs," Dodd said in a statement on his dealings with Corker.

What’s the trade?

I still think it’s a lot of noise, says Karen Fienrman. I think it’s a lot like health care; the stocks took it on the chin then climbed as the new regulations didn’t look at onerous as expected.

I’d trade developments with a long position in JPMorgan, counsels Joe Terranova. Use $37.02 as your point of reference.

Also keep Wells Fargo on your radar, counsels Tim Seymour.


What do you think? We want to know!



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Trader disclosure: On February 11th, 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), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Is Short (IWM), (CAKE), (IJR), (SPY), (MDY), (UNG), Short (USO); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (PLCE); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (JPM), (OIH), (AA), (RIMM), (GOOG), (EMC), (AAPL), (DELL), (MSFT)

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)

For Christopher Zook
Zook, His Clients, And His Firm Own (OIH)
Zook, His Clients, And His Firm Are Short (VNQ)

For Scott Redler
Redler Owns (AAPL)
Redler Owns (GOOG)
Redler Owns (SPY)
Redler Owns (RIMM)
Redler Owns (TOL)
Redler Owns (AMZN)

For Brian Kelly
Kanundrum Capital Owns (EWP)
Kanundrum Capital Owns (NBG)
Kanundrum Capital Owns (SYY)
Kanundrum Capital Is Long U.S. Dollar vs. Short Euro
Kanundrum Capital Is Short U.S. Treasury Futures
Kelly Owns (NBG)
Kelly Owns (FXE) Puts

Added Disclosures:
Finerman's Firm Owns (MCD)
Finerman's Firm Owns (JPM)
Finerman's Firm Owns (BAC)
Finerman Owns (BAC) Preferred, (BAC)
Finerman Owns (JPM)
Finerman's Firm Owns (CYB)
Seymour Owns (CTCM)
Seymour Owns (AAPL)
Seymour Owns (BAC)
Seymour Owns (F)
Seymour Owns (INTC)
Seymour Owns (LVS)
Seymour Owns (MGM)
Seygem Asset Management Owns (NBG)
Seygem Asset Management Owns (POT)
Seygem Asset Management Owns (MTL)



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