Cramer: Gov't could fine Goldman $2BB or $3BB

They may get the biggest fine ever, but if you think about it in the long term.   It is one quarters earnings.  Will they feel it?  Of course they will, but over the long term, it would really not be very significant.

Cramer was throwing around a $2BB to $3BB fine.  With $38 Billion?+ on their balance sheet in cash and equivalents, the $3BB is not as giant as it might seem. Less than 10% of their current cash. 

Via NewsBusters:
According to CNBC "Mad Money" host Jim Cramer, after the release of several e-mails from Goldman traders, including Fabrice Tourre, who described the investments at the firm "like Frankenstein," the investment bank finds itself in an untenable position.

Cramer told MSNBC's April 26 "Morning Joe" that Goldman really has no defense if, as the government alleges, Goldman misled investors when it established a mortgage-backed security in 2007 for a hedge fund client looking to bet against the housing market. And that's in addition to facing heat from shareholders for not revealing that it received a Wells Notice from the SEC.

But the "Mad Money" host said it isn't frivolous either. The government "has a real case," he said, that "Goldman has to settle. This is a ridiculous thing Goldman is doing." The bottom line, according to Cramer is a settlement for "$2 Billion, $3 billion, and management may not stay."


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