Is Hank Paulson Coming Back To Take Charge At Goldman ?

John Mack did it over at Morgan Stanley, so why can't Hank Paulson return to Goldman Sachs to take over from under fire CEO Lloyd Blankfein ?

The problem with ditching Blankfein who, despite getting the backing of Warren Buffett over the weekend, remains under pressure after his woeful appearance at those Senate hearings last week, is that there is no obvious replacement.

But Fox Business News' Charlie Gasparino has heard whispers that some influential types are thinking it might be appropriate to bring back former Goldman CEO (and ex-US Treasury Secretary) Hank Paulson to steady the Goldman ship. Unlikely, we give you, but stranger things have happened.

In the meantime, Bloomberg reports that Rochdale Securities analyst Richard Bove has had another pop at Goldman's top executives. In a recent note, Bove wrote: 'Goldman is going to have to pay a high price for its ineptitude. Its shareholders already have....(Goldman's management) should have understood the size and enormity of the forces being brought against it. (They) did not. Thus its responses were weak and ineffectual.....High level executives are going to have to be removed from their positions'.

Finally, The Financial Times reports that the cost of insuring Goldman's debt against default has increased by some 80% in the last two weeks. According to Markit, a 5-year credit default swap insuring $10m of Goldman debt currently costs around $162,000-a-year - around the same amount it costs to purchase similar protection for Citi and Morgan Stanley.

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