Gasparino CDS Explodes On Blankfein Comments
In an abrupt about-face on his Goldman stance, Gasparino earlier, in a HuffPo op-ed, recommended Lloyd Blankfein step down.
But it takes more than being less bad (and less of a political
animal) than your counterparts to be considered a good CEO. Somehow I
just can't imagine former GE CEO Jack Welch twisting himself in knots
trying to rationalize what CEOs are supposed to do, which is to make
money. And what CEO would attempt to buy off public outrage about
handing out billions in bonus money, if such outrage isn't justified in
the first place?
For all these reasons I am recommending two things: Mr. Oracle
should use his considerable clout to release taxpayers from their
Goldman Sachs subsidy and make the firm a hedge fund or something
different than a government protected "bank." Second, I think it's
about time for Lloyd Blankfein to step down and resign as CEO of
Goldman, and really start doing God's work by sparing the rest of us
the stupidity of listening to his excuses.
The market responded appropriately, by savagely punishing GASBG 5 Yr CDS shortly after the announcement: in fact the market closed offerless after a steep selloff culminated with rumors of an S&P downgrade of the CNBC anchor deep into junk territory. Goldman's market in Gasparino protection: 10 by 100 pts up, with Goldman a size buyer and seller.