Goldman Comes To Margin Stanley's "Defense" As It Is Now Actively Selling MS Calls, Buying Short Term CDS

Tyler Durden's picture

The bank that was selling Dexia shares to its clients all the way down (Goldman Cuts Dexia From Buy To Neutral On Imminent Restructuring And Winddown) and which has the uncanny ability to align its own trading desk with an event's "outcome", at the expense of clients of course, has just done it again. As of this morning it is actively selling Margin Stanley calls to whoever is still left as a client. From a just released report: "Buy calls for a likely relief rally on earnings; sell short-dated CDS as fear falls." Now... just who are these clients buying calls from and selling CDS to?

Goldman MS Calls

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Spirit Of Truth's picture

They got great attornies to defend "God's work"!

strannick's picture

Now... just who are these clients buying calls from and selling CDS to?

-Ooo ooo. I know. I know. Goldman Sachs?

Seems the only convienient pool of dumbmoney bigger than the clients of banks like Goldman Sachs that gets suckered into buying toxic trash , is the US taxpayer.

Zero Govt's picture

well the US taxpayer is over 60% against bailouts's that dumb fuk middleman, their 'public representative', that's buying all this toxic crap up and most of them are on Goldman Sucks payroll... what a coincidence/connection!!

Josh Randall's picture

Goin' under, RATS ARE IN THE CELLAR...

Or in this case: Goin' Under. RATS ARE THE SELLER.

Zero Govt's picture

There's a rat in ma kitchen

what am i gonna do?

there's a rat in ma kitchen

what am i gonna do?

i'm gonna beat that rat 

that's what i'm gonna do

i'm gonna beat that rat


ArkansasAngie's picture

My question, too.  Who is buying this horse manure?

Who are these suckers?

Whose money are they using to buy this trash with?

It had better not be mine.

buzzsaw99's picture

The way it reads to me is: "We wish more people would buy MS calls"

Overflow-admin's picture

"institutional clients" = pension funds, etc.

> Your savings will certainly be in.

Fish Gone Bad's picture

To make this really poetic, the Goldman needs to sell the crap to the NY Police that are beating up the protesters.

dcb's picture

no idea how much ms is up from the low, there were of course better ties to do this, like not when we are right up against weekly resistance.


then of course who's stupid enough to be a goldman client after what we have learned. I want a huge legal document that gives me an airtight case against them when I discover they are actively trading against my position they endorssed. They would never work with me, and I'd never trust them

Herman Strandschnecke's picture

o/t. Amy Wilson Debt Crisis Live:


12.40 Given the market rollercoaster we've been on, this tweet from zerohedge is slightly dispiriting (but accurate):

@zerohedge It has been over 2 months since the last policy decision in Europe (July 21). Everything else has been lies, rumors and innuendo

ziggy59's picture

Squidly Goes Jaws

Downtoolong's picture

I think Goldman's entire business model can be summarized in three words; "Conflict Of Interest". 

sqz's picture

I couldn't have said it any better. Well, done :)

Its_the_economy_stupid's picture

Plaid-Jacketed WSJ readers loading up.

El Gordo's picture

Just show what you can do when the government is in your corner and you don't have to be restricted by those laws and regulations which only the little people are subjected to.

LongSoupLine's picture

Who's buying?  Well, when it all goes bad, ultimately it's us.

mark mchugh's picture

Wow.  I challenge anyone to find a webpage with more head-up-your-ass advice:

Feb 7, 2011

In the U.S., Goldman's bank analysts recommend Citigroup(C_) and JPMorgan Chase(JPM_) among large-cap bank names and Huntington Bancshares(HBAN_), Banco Popular(BPOP_) and East West Bancorp(EWBC_) when it comes to regional bank stocks.

As for Goldman's European analysts, they already had buy ratings on several stocks, including Swiss bank Jules Baer, Sweden's SHB, Spain's BBVA , France's Societe Generale, and Belgian-based lender Dexia. They also had conviction buys on Erste Bank in Austria, France's BNP Paribas, and U.K.-based HSBC(HBC_) and Lloyds Banking Group(LYG_).

Here's a chart of this douchebaggery:;range=20110201,20111006;;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=of

(note: you'll have to tweak the timeframe yourself)

But Tyler's evil when he says bad stuff about Morgan Stanley?

gmrpeabody's picture

If Goldman is pushing the banks, that means they are trying to bail. Plan accordingly.

thedrickster's picture

A screaming FAZ buy signal no?

mark mchugh's picture

In the longer run, everybody loses with leveraged ETFs.  Keep that in mind....

thedrickster's picture

Yes of course, standard disclaimers, toxic waste, etc.

LowProfile's picture

No.  That's not what he meant at all.

Look up "leveraged ETF time-decay".

thedrickster's picture

I know what he meant.... levered etfs decay.

thedrickster's picture

Tyler - Cramer and Melissa Long Time Lee spent a good 90 seconds castigating "some blog" this AM...

When the shining beacon of financial journalism says cease and desist you cease and desist damnit.

gmrpeabody's picture

They just wouldn't name names. Too funny. They are long B of A.

Money 4 Nothing's picture

Yea! Some Blog site.. err uhhhummm, wonder what site that could be??

 This was subliminally flashed on the screen, I hit Tivo rewind quick to see it again!


It's the evil twin Tylers! Metteling kids! Stop telling the truth! your ruining their whole psyops!

gmrpeabody's picture

Too funny....

And your chicks for free!

Instant Wealth's picture

Zerohedge ! Your reputation on the other side of the pond is growing. You made it to p. 12 of the "Handelsblatt" yesterday. Translated in my best humble school english, here are some quotes, :


It`s bubbling inside rumor kitchen
Morgan Stanley prized as low as in fall of 2008

by Thomas Jahn
"Fama nihil est celerius - nothing is faster than a rumor", wrote Titus Livius more than 2000 years ago. (...) Livius would be proud of Tyler Durden. That is the pseudonym of a blogger, who runs the well-known financial web site "Zero Hedge". Last Friday Durden pointed to the rising costs for Morgan Stanley credit default swaps. (...)<

(Handelsblatt, 10/6/11)

slewie the pi-rat's picture

oddly, in spite of the fun-da-mentals, the squid may be right for short-term, earnings-based rally.  the moStan is gonna take the market-value declineZ of the bonds it has sold as some kinda earnings?  is that wtf they are up to?  and the bonds are about half-flushed down the shitter on their way to washington, so earning will be a nice "surpirise" and this play might work

but, as tyler says, if the squid fades these short-term playz, it will have sold some calls and bought some swaps, and the clients can close their ends on the "market" after the price gets a nice "rally" because nobody and their grandmother will know what's up and sell the news, of course...

Stochdoc's picture

You can bet your asses GS is shorting the shit outta MS.

Money 4 Nothing's picture

Seems like a snake eating it's own tail, it's not a very good way to get nutrition.

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