Here come the Feds

April 30, 2010

ANT has been calling for and expecting see increase negativity around GS  for a while now and just as we suspected, things are spiraling further downhill for the storied firm.

Today AP is reporting that the Justice Department has opened a criminal investigation into the firms mortgage related dealing.

Read the whole story here.

ANT remains of the opinion that now is a great opportunity to short GS.  There is a big pipeline of news that will hit over the next few months and all of it is slanted to the negative side of ledger.  The financial reform bill seems to be picking up steam and looks like it might implement serious derivatives reform (which will hit GS in its biggest profit center) and the Volcker rule (which if implemented in its “strong” form might require the firm to split up or go private).

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UPDATE:

ANT has been working out in London (UK) for the last little while and the above post was written in the morning.  When the markets opened in NY later in the day GS opened sharply down.

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