I'm loading up on Mar and Apr otm puts. With rumour and innuendo being enough to destroy Bear Stearns maybe Lehman's next.
Can we honestly think the Bear is the only one with that kind of exposure/leverage? LEH is always the one you hear of, but I'd throw MER and MS in with them. MS really started to swing for the fences with their prop desk over the last few years. MER always seems to follow the others into whatever was working at the time.