So what happens if LEH doesn't declare bankruptcy tonight?

Will the stock open up higher tomorrow or lower?

 

They only have 1 hour left... personally, I don't think they'll be declaring bankruptcy. The FED has the option to temporarily backstop Lehman's liabilities for 48 hours? while they go and try to find another buyer.

 

word is they've started unwinding positions.

 

If you're talking about the special trading session they had today for counterparties, the trades are only official if Lehman declares bankruptcy tonight. That's why I'm curious about this.

 

Lower, but I'm more concerned about BAC merging with that dog called Merrill.

 

That's part of the puzzle; why did they show interest in LEH in the first place if they were going to end up buying MER?

 

Hmm, what was the purpose of doing the netting trades this afternoon since it's 12:00 now?

 

Those netting trades disappear if LEH does not file BK

 

The fact that I haven't seen a news headline tells me either:

a) The headline has not been run yet

b) There was a last minute deal

I dont't think Treasury or Fed will allow the markets to open tomorrow without either LEH being taken over/under or them filing for Chapter 7 protection.

 

Speaking of headlines, what happened to the offers that Lehman received for their asset management division? Are those now off the table?