Lehman close to busto

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<blockquote>NEW YORK (Reuters) - Lehman Brothers Holdings Inc (nyse: LEH - news - people )'s survival was called into question as its chief executive scrambled to sell assets to cover losses from toxic real estate investments, sending shares down as much as 46 percent.



The investment bank's need to raise desperately needed cash, broadly outlined by CEO Dick Fuld on Wednesday, failed to assuage investor concerns. The stock dropped $2.92, or 40 percent, to $4.33 Thursday after falling as low as $3.88.



The steady stream of grim tidings and the dearth of details from the company stoked fears that some of Lehman's clients and trading partners might take their business to more stable firms.



Only six months since the collapse and eventual fire-sale purchase of venerable investment bank Bear Stearns, confidence in the Wall Street business model has faded.

</blockquote>


<a href="http://www.forbes.com/reuters/feeds/reuters/2008/09/11/2008-09-11T171455Z_01_N11366713_RTRIDST_0_LEHMAN-WRAPUP-4-PICTURES.html">http://www.forbes.com/reuters/feeds/reuters/2008/09/11/2008-09-11T171455Z_01_N11366713_RTRIDST_0_LEHMAN-WRAPUP-4-PICTURES.html</a>



Is it just me or did the question change from "who's next" but "how many" and "when"?



Also, I think I figured out who's on the hook when all this housing bad debt losses comes home to roost.
 
[quote author="biscuitninja" date=1221198706]Well, who is going to be on the hook???</blockquote>


Are you being serious or rhetorical? If serious, the answer is your children and maybe their children.
 
<a href="http://calculatedrisk.blogspot.com/2008/09/wapo-treasury-and-fed-assisting-in-sale.html">Rumor has it that uncle Ben and uncle Hank are working this weekend </a>to find a [strike]suitor[/strike] bagholder for LEH. I have a felling it will be like Bear Stearns, and they will be bought for a discount below book value but above what they are trading at. I believe it so much so I put in a small after hours order, but below what it is currently trading at, and it is currently trading at $3.85. If my order goes through, I hope it was meant to be, if it doesn't go through, then it wasn't meant to be. Only 45 minutes left in after hours trading...
 
[quote author="graphrix" date=1221200260]<a href="http://calculatedrisk.blogspot.com/2008/09/wapo-treasury-and-fed-assisting-in-sale.html">Rumor has it that uncle Ben and uncle Hank are working this weekend </a>to find a [strike]suitor[/strike] bagholder for LEH. I have a felling it will be like Bear Stearns, and they will be bought for a discount below book value but above what they are trading at. I believe it so much so I put in a small after hours order, but below what it is currently trading at, and it is currently trading at $3.85. If my order goes through, I hope it was meant to be, if it doesn't go through, then it wasn't meant to be. Only 45 minutes left in after hours trading...</blockquote>
You think they'll do the same thing with WaMu? It really looks like WaMu is right on the edge of the cliff, a gentle breeze may send them over at this point.
 
[quote author="usctrojanman29" date=1221201963][quote author="graphrix" date=1221200260]<a href="http://calculatedrisk.blogspot.com/2008/09/wapo-treasury-and-fed-assisting-in-sale.html">Rumor has it that uncle Ben and uncle Hank are working this weekend </a>to find a [strike]suitor[/strike] bagholder for LEH. I have a felling it will be like Bear Stearns, and they will be bought for a discount below book value but above what they are trading at. I believe it so much so I put in a small after hours order, but below what it is currently trading at, and it is currently trading at $3.85. If my order goes through, I hope it was meant to be, if it doesn't go through, then it wasn't meant to be. Only 45 minutes left in after hours trading...</blockquote>
You think they'll do the same thing with WaMu? It really looks like WaMu is right on the edge of the cliff, a gentle breeze may send them over at this point.</blockquote>
Speaking of WaMu. I just cashed a WaMu check at that bank, and since I didn't have an account with them I literally had to give them a thumb print. I've never had to do that before. What's next, retina identification?
 
[quote author="CalGal" date=1221202686][quote author="usctrojanman29" date=1221201963][quote author="graphrix" date=1221200260]<a href="http://calculatedrisk.blogspot.com/2008/09/wapo-treasury-and-fed-assisting-in-sale.html">Rumor has it that uncle Ben and uncle Hank are working this weekend </a>to find a [strike]suitor[/strike] bagholder for LEH. I have a felling it will be like Bear Stearns, and they will be bought for a discount below book value but above what they are trading at. I believe it so much so I put in a small after hours order, but below what it is currently trading at, and it is currently trading at $3.85. If my order goes through, I hope it was meant to be, if it doesn't go through, then it wasn't meant to be. Only 45 minutes left in after hours trading...</blockquote>
You think they'll do the same thing with WaMu? It really looks like WaMu is right on the edge of the cliff, a gentle breeze may send them over at this point.</blockquote>
Speaking of WaMu. I just cashed a WaMu check at that bank, and since I didn't have an account with them I literally had to give them a thumb print. I've never had to do that before. What's next, retina identification?</blockquote>


Not the retina. I hear Graph is working on a super secret back hair identification system for the banks to do ID checks instead. Unfortunately he has only self-piloted the product so far with mixed results... Evidently when he combs some of the hair a different way in the morning, the scans fail.
 
[quote author="awgee" date=1221199904][quote author="biscuitninja" date=1221198706]Well, who is going to be on the hook???</blockquote>


Are you being serious or rhetorical? If serious, the answer is your children and maybe their children.</blockquote>


sorry my rhetorical writing is broken... :lol: I took it to mean... everybody...well most everybody in the us...
 
[quote author="awgee" date=1221199904][quote author="biscuitninja" date=1221198706]Well, who is going to be on the hook???</blockquote>


Are you being serious or rhetorical? If serious, the answer is your children and maybe their children.</blockquote>


Maybe in the long run, but in the short run the shareholders are going to take the bath.
 
[quote author="no_vaseline" date=1221214607][quote author="awgee" date=1221199904][quote author="biscuitninja" date=1221198706]Well, who is going to be on the hook???</blockquote>


Are you being serious or rhetorical? If serious, the answer is your children and maybe their children.</blockquote>


Maybe in the long run, but in the short run the shareholders are going to take the bath.</blockquote>


At this point only gamblers are investing in these stocks. Reasoning goes something like "I can only lose 100% but I can win 500%".
 
[quote author="usctrojanman29" date=1221201963][quote author="graphrix" date=1221200260]<a href="http://calculatedrisk.blogspot.com/2008/09/wapo-treasury-and-fed-assisting-in-sale.html">Rumor has it that uncle Ben and uncle Hank are working this weekend </a>to find a [strike]suitor[/strike] bagholder for LEH. I have a felling it will be like Bear Stearns, and they will be bought for a discount below book value but above what they are trading at. I believe it so much so I put in a small after hours order, but below what it is currently trading at, and it is currently trading at $3.85. If my order goes through, I hope it was meant to be, if it doesn't go through, then it wasn't meant to be. Only 45 minutes left in after hours trading...</blockquote>
You think they'll do the same thing with WaMu? It really looks like WaMu is right on the edge of the cliff, a gentle breeze may send them over at this point.</blockquote>


No, WaMu is governed by commercial banking laws and is regulated by the FDIC who insures WaMu's depositors. The FDIC will try to find a bank to buy/takeover the deposits, assets, etc. but WaMu the bank will no longer exist. WaMu, the corporation will not be bought, it's business will be taken over.
 
<span style="font-size: 15px;"><strong>Lehman unloads it's banking divisions to Barclays</strong></span>



<a href="http://money.aol.com/news/articles/_a/bbdp/lehman-unloads-it-banking-divisions-to/176784?cid=5">They didn't want the whole thing anyways.....</a>
 
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