Lehman to be sold by the government.....

Discussion in 'Wall St. News' started by Red_Ink_inc, Sep 11, 2008.

  1. LEH Lehman Brothers: U.S. Government to Arrange Sale of Lehman Brothers- Washington Post (4.22 -3.03) -Update-

    Washington Post reports that the Treasury Department and the Federal Reserve are engineering a sale of LEH through a consortium of private firms. The details are not finalized, but sources familiar with the matter say the purchase is expected to be completed and announced this weekend before Asian markets open Monday morning. LEH, which had been anxious to show it could weather the credit crisis that contributed to the firm's $3.9 bln Q3 loss, said Wednesday that it would sell a majority stake in its investment-management division, slash its dividend and spin off about $30 bln of real estate assets. The announcement did little to calm investors' concerns that LEH, the smallest of the four major Wall Street investment banks, might suffer the same fate as former rival Bear Stearns, which was acquired by J.P. Morgan Chase in a deal regulators brokered in March after a bank run that shook the securities industry.
     
  2. Daal

    Daal

    at a premium or discount?have a hard time seeing a wipe out on this one
     
  3. Now trading at $3.30, damm WSJ is so full of shit.
     
  4. LEH spiked from 3.90 up to 4.45 on huge volume on the initial news at 5:30PM, only to DEFLATE to where it is currently . . .

    3.05

    at 5:57 PM EST
     
  5. It's not the WSJ you moron.
    It's the Washington Post.

    Perhaps a course in "Reading Comprehension" is in order for you!
    :D
     
  6. Here's the story ...

    U.S. Government Assisting in Sale of Lehman Brothers
    By David Cho and Heather Landy
    Washington Post Staff Writers
    Thursday, September 11, 2008; 5:40 PM

    The Treasury Department and the Federal Reserve are helping Lehman Brothers put itself up for sale. The details are not finalized, but sources familiar with the matter say the purchase is expected to be completed and announced this weekend before Asian markets open Monday morning.
    The Fed and Treasury are talking to a wide range of firms and examining multiple scenarios for the sale of the venerable investment brokerage.

    Lehman Brothers, which had been anxious to show it could weather the credit crisis that contributed to the firm's $3.9 billion third-quarter loss, said Wednesday that it would sell a majority stake in its investment-management division, slash its dividend and spin off about $30 billion of real estate assets.
    The announcement did little to calm investors' concerns that Lehman, the smallest of the four major Wall Street investment banks, might suffer the same fate as former rival Bear Stearns, which was acquired by J.P. Morgan Chase in a deal regulators brokered in March after a bank run that shook the securities industry.

    Lehman's share price fell nearly 40 percent to $4.22 at the end of trading today, continuing a precipitous fall from more than $60 a share as of February
    Goldman Sachs Group reduced its rating on the company, with one analyst saying that the restructuring "fell short of what was necessary," the Bloomberg news service reported, while Moody's Investor Services argued that the firm faced a cut in its credit rating unless it quickly enters a "strategic arrangement" with a stronger partner.

    During a conference call with Lehman executives yesterday, analysts pressed for assurances that the $5.6 billion of write-downs that the firm disclosed for the quarter ended Aug. 31 -- primarily for declines in the value of assets tied to residential mortgages -- sufficiently reflected the severity of the troubles in the real estate market. The concern demonstrated the skepticism that remains even after last weekend's federal bailout of government-sponsored enterprises Fannie Mae and Freddie Mac, which play a vital role in supporting the mortgage and housing markets.

    "There's still an element of doubt in terms of confidence of the financial players, and that's not going to go away just with the bailing out of Bear Stearns and the bailing out of the GSEs," said Michael Kastner, managing director of fixed income at Sterling Stamos Capital Management in New York. "What we're going to need to see is at least one quarter where the financial institutions don't show write-downs and do show profits and an ability to grow their business."
    Staff writer Howard Schneider contributed to this report.
     
  7. he probably meant the first spike.....not the spike you are referring to....
     
  8. m22au

    m22au

    Steady Landis.

    Daal was probably referring to the earlier WSJ story about BAC buying LEH ... and hence he/she is thinking that the WSJ was full of "untruths"


     

  9. It wasn't "Daal" that stated that.
    It was the resident ET "paper-trader", Aaron Copulation that made the remark about the WSJ.

    :p
     

  10. nonetheless, more guarrantees?? :confused:

    another bailout?? :mad:

    where does it end?:eek:
     
    #10     Sep 11, 2008