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Here's the reaction to the
news from some of our commentators on
Timothy Collins, "Goldman Isn't Going Away"
"The Goldman Sachs news is big, but I don't believe Goldman goes away or that it will suffer long-term damage. Ask yourself: Who would step up in its place? A few could play, but I don't believe they're ready to supplant Goldman. To me, this is an opportunity, maybe a tepid one for now, but I am selling some far out-of-the-money puts on GS."
At the time of publication, Collins was long GS.
James "Rev Shark" De Porre, "Trying to Figure Out the Big Picture"
"I see a number of analysts are already out with reports defending Goldman Sachs but I believe they may be a bit hasty. The real issue here isn't the dollars at stake, or even Goldman's culpability, but whether this is the start of a politically driven campaign to find villains and scapegoats for the financial crisis."
Jim Cramer, "Goldman Opportunity Is in Other Sectors"
"First, the immediate opportunity is not with Goldman Sachs. It is with stocks that just reported great numbers that are down a great deal off this, particularly the non-financial stocks. Look for who reported this week, a la
, and buy that first. Any industrial that reported great numbers that is being hammered is a natural place to go."
At the time of publication, Cramer was long GS and Intel.
Tim Melvin, "Goldman"
"I have a feeling the Goldman thing is going to have a cockroach effect. If there is one of these things it is a pretty good bet there will be more. Nobody on Wall Street ever created just one of anything and it was never contained at one firm. In its zealous attempt to prove to the little guy that they are punishing the bad rich people they will leave no stone unturned. Of course they should be punished if the intentionally broke the law but let's hope the SEC does not get carried away. But they probably will."
Timothy Collins, "How I'm Playing GS Now"
may benefit here, so I've taken a small position with some April 40 and 41 calls against some short April 42 and 43 calls. I have also sold a lot of puts against GS that expire today in the 155 and 160 strikes along with 175 calls. I am keeping a close eye on these as well. This has certainly made for an interesting day; but this may be that "missing" item that has been needed to give this rally a pause."
At the time of publication, Collins was long AIG and short GS volatility.
Jim Cramer, "Goldman Flap Will Drive Us to Lower Strikes"
"The government going after the biggest and best firm for fraud can cause anyone to blanch. The pressure that this news of Goldman Sachs
can put on the market will be overstated because so many people sold April puts that are suddenly coming back to bite people."
Jim Cramer is long Goldman Sachs for his charitable trust, Action Alerts PLUS.
James "Rev Shark" De Porre, "Traders Find a Reason to Start the Selloff"
"It is interesting how markets that are technically extended always eventually find a piece of news to justify a selloff. We had already had a little sell-the-news reaction today to earnings, but the Goldman Sachs
is the sort of thing the bears can't shrug off as easily. There are likely to be some widespread reverberations, and I can imagine how the media are going to enjoy writing about the "corruption" on Wall Street."
Sham Gad, "Don't Fret Goldman"
"It would benefit investors to remember that the federal government did not pursue a policy of leveraging its balance sheet by hundreds of billions of dollars to rescue the financial industry to let something like this sink the recovery again. The SEC will take a hard look at this, levy the appropriate fines, pursue the appropriate individuals and go about its business. Yes in the short term, this could stop a nice start to 2010, but in the long-run I can't see how the powers that be want to shake a fragile economy more than they need to in order to hand down the appropriate discipline."
Tom Graff, "Goldman"
"I think the key is exactly on what legal theory this thing turns. If it is literally just the fact that
was picking the loans, then there won't be much contagion. If this is a witch-hunt, then
Merrill Lynch (BofA)
were big players in CDO issuance."
At the time of publication, Graff was GS bonds.
Stockpickr Answers Is anyone else nibbling at the financials today?
Gary Morrow, "Quick Look at Goldman Chart"
"Goldman Sachs is taking a double-digit hit following the SEC charges. Volume is surging and is already double the stock's daily average. The loss has pushed the stock below both its 50- and 200-day moving averages. This area, between $167.00 and $166.00 is key. I would expect a battle here between dip-buyers and panic-sellers."
Alan Farley, "Banks: Buy 'Em While They're Crying"
"Buying opportunity in the "good" banks. Just picked up
looks interesting as well."
At the time of publication, Farley was long Wells Fargo.
Brian Gilmartin, "Goldman Comment"
" For me, that is the key question, did the near collapse of the credit system in late '08 result in GS adjusting their funding to prevent the kind of liquidity withdrawals that bankrupted Lehman and Bear Stearns? GS management has long been the smartest guys in the room, and we'll soon know if this maxim is true."
At the time of publication, Gilmartin was long Goldman Sachs.
Ken Shreve, "Goldman"
"Believe me, I like capitalism as much as any other Wall Street guy, but if it's proven that Goldman Sachs was betting against the mortgage investments they were selling to customers, they should be held accountable ... big-time."
Stockpickr Answers Anyone else nibbling at the financials today?
This article was written by a staff member of RealMoney.com.