Shares of Goldman rallied on Wednesday, one day after CEO Lloyd Blankfein and other Goldman executives testified before a senate panel.
As you likely know lawmakers are scrutinizing the firm’s role in the financial crisis.
The government is alleging, in a civil case, that Goldman fraudulently marketed a financial instrument by hiding vital information from investors, including the role that hedge fund Paulson & Co played in its creation.
Goldman has vehemently denied the charges calling them "unfounded in both law and fact.”
What must you know?
Lloyd Blankfein will not be the CEO of Goldman Sachs at the end of the year, predicts Gary Kaminksy on the Halftime Report. But it’s not because of the senate hearings. Goldman is a company that doesn’t like being in the headlines.
The company is bigger than any individual and Blankfein has become too much of a story, Kaminksy explains.
I expect to see the company go back to investment banking and the way they will send that message is with a new CEO, Kaminksy speculates. It’s symbolic.
What's the trade?
I think smart money buyers have been adding to their positions in Goldman, says Kaminksy. I'm talking macro global hedge funds and sovereign hedge funds. They are taking advantage of weakness in the share price.
I agree with Gary. From here, I think the stock goes to $175, says Guy Adami.
It wouldn't surprise me to see Goldman buying back its own stock, adds Anthony Scaramucci. I also think the stock could have a lot of room to run.