Although the bank has reduced its leverage, or debt relative to assets, it still has about $600 billion of assets supported by some $30 billion of equity, meaning the value of its assets need only decline by 5 percent to make the company worthless. http://www.reuters.com/article/newsOne/idUSN0927996520080914
lehman with no shareholder equity is still worth a lot of money(they got earnings power). its a leh in a huge hole that a buyer needs to be worried about
barclays walks out. now the only hope is a fed backstop for BAC. otherwise its chapter 7 and MER to go under as well
Lehman Brothers appears headed toward liquidation after Barclays withdrawal, plan to divide Lehman into "good bank, bad bank" falls apart: report 2:29pm EDT (Reuters)
looks dire -fed requests banks to open special trading session on leh counterparty risk in order to try and minimise damage if leh's goes into liquidation today. Thats my brief summary of the reuters headlines!
Folks i think we are done, unless fed steps in last minute which is highly unlikely given paulson's strong stance. Time to take the loss, i hope noone was holding on margin. LondonHedger, in the unlikely event you are trading with real money, tough loss dude.
yep. if there is bk dont even hope for anything, just get out as soon as you can. stock should open below $1
The assets are so toxic and impossible to value that both BOA and Barclays wanted our Fed and Treasury to back the risk. When they refused, everyone ran for the hills. Like I said smart money sold all last week, suckers bought, liquidation tonight, and .50 to $1 tomorrow.