If I am short Goldmansachs, what happens if CIT pays them???????

Discussion in 'Trading' started by Uncle_Ho, Oct 6, 2009.

  1. If CIT goes bankrupt, will I get clocked being short GS. Could a 10-20% move be warranted if Goldman gets payed 1 Billion, or is that chump change to thier assets?
  2. Why would anyone short the Wall Street Mafia? Period!
  3. Assuming a lump sum payment,

    $1billion/511Million shares outstanding = $1.96 per share (before taxes). Also, account for market upside jubilation which will be >$1.96.