Anyone paying attention to the collapse in LEH

Shares of Lehman have fallen more than 40 percent since the beginning of February

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How long does it take to put together a secondary? Ten minutes? Shares fell while the plan was in progress. The lawyers, the printers, the janitors who empty the waste basket, took some time for everyone to get into position. Last but not least the SEC, "bad dogs" spreading rumors. SEC pumpers.
 
psssttttt....have you heard the rumor that LEH is in trouble?

Well you have now!!!

SELL SELL SELL SHORT....SEC are you listening I'm spreading the rumor.

The SEC seems to look for the little fish and let the big ones go by....


Disclosure: Do not hold stock or options in LEH - never have and never will.
 
Ted spread @ 1.23 today, down another 13 basis points. If there was an impending blow up the spread should be widening, not getting narrower.
 
Quote from makloda:

Ted spread @ 1.23 today, down another 13 basis points. If there was an impending blow up the spread should be widening, not getting narrower.
More...

Looks like everything is all clear now. LEH up 8.95% pre market a good ime to buy hahaha.......or is it a good time to sell hummmm.
 
Quote from Aaron Copland:

Looks like everything is all clear now. LEH up 8.95% pre market a good ime to buy hahaha.......or is it a good time to sell hummmm.
More...

Sorry make that up 10.07% what a great buy right now hahahaha.
 
I have no idea if it's a good buy, just saying the bond market isn't acting as if LEH or any other major bank/broker is on the brink of blowing up.
 
Quote from makloda:

Ted spread @ 1.23 today, down another 13 basis points. If there was an impending blow up the spread should be widening, not getting narrower.
More...

Excellent point!

But for the "Perma-Bears" on ET that believe in all sorts of conspiracy theories, they simply have no time to look at what the Ted-Spread is telling them.

If some of these guys actually TRADED for a living, their accounts would most likely be "blown-up" within two or three months.

:D
 
BSC was about solvency and when push came to shove liquidity. LEH is about SOLVENCY and LEVERAGE i.e. QUESTIONABLE LEVEL 3 VALUATIONS vs EQUITY, as in negative equity (AKA insolvency). With the Fed giving taxpayers money to I-Banks liquidity is not the issue it was. The USD 4Bn preferred was to reduce leverage. NOBODY pays 7% when they can borrow at 2.5%.

" In a note on March 17, James Mitchell, an analyst at the Buckingham Research Group, examined the liquidity positions of all the major brokerage firms and concluded that Lehman had come out ahead. Total liquidity, cash, other liquid assets and the borrowing value of unencumbered assets at Bear Stearns was $35 billion, which as a percentage of total assets, was only 9 percent, he said. That was the lowest in the group. In contrast, Lehman had the highest percentage of liquidity, at 25 percent of total assets, he wrote.

But investors remain unnerved by Lehman’s valuing of so-called level three assets, for which there is not an observable market price. Those assets more than doubled in the last six months of last year, rising to $42 billion.

The investment bank wrote down $1.8 billion, net of hedges, in the first quarter, on mortgage-related securities. But critics believed the number should have been higher. Lehman has $39 billion in commercial real estate assets and $37 billion in residential mortgages. Both businesses have been hurt in recent months."

From NYT
 
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