http://www.clusterstock.com/2008/9/lehman-s-clients-moving-to-protect-themselves-from-firm-failure Many of Lehman's clients, while maintaining support for the firm publicly, are moving behind the scenes to reduce their exposure to the firm, the WSJ reports. For many Lehman counterparties...there was an acknowledgment that they had to guard themselves as the firm's share price continues to fall, even as they wished to support Lehman and its employees...
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Here ya go (if you can't be arsed creating an NP login): Job Advertisment Job Title: Chief Executive Officer Country: United States City: New York Compensation Base: Maybe USD Compensation Bonus: Unlikely USD Position available from: 2008-09-11 Required Experience (years): 0 Role Type: Risk Management Contract Type: Standard Position Type: Management Available: Yes Keywords: We're currently looking for a CEO for our Tier 2, no Tier 3 wait, damn it: Tier 4 Investment Bank. We have a not-so-strong balance sheet and we're not entirely sure what our rating is at the moment. But the good news is: We're somehow in the (undeserved) position that the Federal Reserve Bank will keep loaning us money, no matter what. So, we should be good. For the next 24 hours anyway. As our previous CEO ensured us constantly that "everything was fine" and we.... well, anyway, we need someone new. Pronto. If you know nothing about finance or banking... that's fine, because clearly even people that supposedly know a lot, still screwed things up royally. Instead of a degree or previous banking experience we simply ask this of you: * That you're not afraid to cut your losses. We've been burned by people with a "it'll come back!" attitude before. * You do not play Poker, Blackjack, Monopoly and especially not Bridge during working hours. * You're willing to shake hands with Mr. David Einhorn. * You know people with deep pockets. Think Sovereign Wealth Fund deep. * You have a deep, inexplicable and passionate hatred for mortgages and related securities. We already fired the blonde chick, but that didn't help, really. Compensation will be mostly in stock and stock options, which is a terrific opportunity because the stock can only go up now. So if you want to be CEO-for-a-day, please come to our offices in New York and make yourself comfortable. We can be found at: 745 7th Avenue New York, NY 10019 USA
Daal, I posted this yesterday in another forum: http://globaleconomicanalysis.blogs...h-big-zero.html On Deck: Lehman Lehman(LEH) preferreds are now offered in size at 17%. Washington Mutual (WM) CDS are trading around the 30% level. Me thinks LEH is next. And if you own the preferreds, you can expect... zero. The best case is that the company sells its good assets and ends up a carcase. Meanwhile, most of my Street contacts won't trade with 'em. Does anyone have a link to this Minyanville article?
I would like to see evidence that customers are pulling out. LEH has $600b of liabilities on the balance sheet, not all of this is due quickly but I'm extremely skeptical that they can handle a pullout even with a fed window(that demands collateral posting) I think the fed will strip out collateral requirements and lend freely in order to stop a run
I doubt money is leaving Lehman en masse, but more likely money has been moved into a different type of 'protected' account (can't recall the term at this second) The stock price tells the story.