Anybody who works on the Street would tell you, off the record, that no one would touch a failing IB/BD unless they were persuaded/commanded to by the higher powers that be ie. the Fed/Treasury. There is no such thing anymore as a "great franchise". Everyone is holding crap paper, and the bond market remains illiquid. This ain't over by a long shot. Expect to see more firms run into this situation.
This by far is the single most stupid thread on ET... EVER!!! HOUSEWIVES, TRAILOR TRASH, ...give me a fucking break. Do THEY know WHO LEH is or do they even CARE???? :eek:
I dont think any firm in wall street will let them succeded Look at GS Bear sterns is gone Lehman is gone next Merril lynch + Morgan Stanley After that it will be come a monopoly for goldman sach. I dont know what will happen on monday or sunday night but i can sure tell you Goldman sach is gong to report very bad earning so that it can take the whole financially sector lower and finally be the only company which is the strongest will be left will be Goldman Sach group People have already lost fate in the financial system. And mutual funds are dumping the brokeges stock left and right. I own 300 Mer and 100 shares Leh I just hope there is some short covering so that i can brake even and get the fuck out I dont trust these people on wall street any more MOTHER FOKERS Leh book value is $16 GTFOUT now trading $3.50 Mer book value Is $20 WTF now trading $17.10 Greed , liar monopoly strength power all ,s fucked up on wall street
There is something here you people are not considering. wall street firms are heavily dependent on human capital. most LEH employee's own stock. if they are sold at $1 the employees would have lost a vast fortune and they are likely to hate whoever took them under, its quite possible they will seek employment in another firm. jamie dimon realized that and upped his bid for BSC by 5 times. shareholders could also vote down a really low deal. Perhaps I'm wrong and they wont be sold at a small premium but I will be surprised, specially given Fuld's tendencies and the ease they had in raising $4b in equity offerings. a equity offering of this size would mean an higher than 100% premium
you are correct about trading fools but your assessment of the situation is dead wrong. if you are into "smart investing ala graham' u would have bought on friday as an investment.
BoA would be mad to take on LEH and all the associated baggage. Better to grow the new business areas by recruiting the top LEH employees and their contacts.At the end of the day that's the only of value at LEH
went long on friday but my confidence on this trade is extremely low, specially now that the NY fed is involved. luckly my position was quite small but I'm ready to see the stock open at $1. we will see
They finally did something smart. Head of the NY Fed took the surviving assholes, put them in a room in lower Manhattan, and said, "you fix it." This needed to be done. You don't get to steal all the money all the time and go to the Treasury for a quick fix. Only way this can truly end is some catacylsmic event, like some drunk laying in his own puke for eight hours. Mr. Market will recognize the tell. Obviously, BSC and LEH weren't big enough. C? Will that do it?
Something that will almost certainly happen is paulson and the fed yelling on MS,MER,GS ears 'RAISE CAPITAL SELL ASSETS now, I dont care about your stockholder' they might very well have to comply. meredith whitney completly missed this one, this could be the end of the investment banks as we know them
Yes, I am a member! We hold meetings the third Tuesday of each month and wear red beanie hats and sing chants. We control the world through blackberry text messages between our members. Next week we are targeting the entire country of England to bring the pound to it's knee's.