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

[Uncle_Ho]

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?

 

[F18HORNET]

Why would anyone short the Wall Street Mafia? Period!

 

[circadian]

Quote from Uncle_Ho:

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?

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.