Mystery Trader May Make Millions On Blankfein Quit Bet

Dealbreaker reminds us of a story that was circulating in The Wall Street Journal a few months back that a London-based trader was talking big in Davos in January, busy accepting bets to support his view that Goldman Sachs CEO Lloyd Blankfein would quit within 2 years.

The trader was apparently taking bets from anyone who would trade, and, because at the time, Blankfein was being lauded as the man who had helped Goldman successfully navigate the financial crisis, the trader is thought to have gotten decent odds. Fast forward a few months, and, in the wake of the SEC fraud charges, Blankfein's position doesn't appear as strong, and the unnamed trader may stand to make millions in the event that Blankfein stands down.

In the meantime, Fox Business News's Charlie Gasparino has reported that, although the Goldman board is said to be standing behind Blankfein, there is a feeling emerging at the firm that he might not be the man best qualified to lead it through what looks likely to be a protracted legal fight. One option favoured by some executives, however, is to have Blankfein relinquish his chairman's role, leaving the new chairman to marshal the troops for the legal fight ahead, while Blankfein continues to run the firm's ongoing business.

Finally, Reuters reports that a Goldman spokesperson has confirmed that Fabrice Tourre, the trader / salesperson at the heart of the CDO scandal, has decided to take some time off, but remains a firm employee.

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