BSC redux:LEHMAN IS CONSIDERING raising billions of dollars in new capital

[blackchip]

Here we go again.

WSJ.com
Losses Push Lehman
To Weigh Raising New Capital
By SUSANNE CRAIG
June 3, 2008; Page A1

Lehman Brothers Holdings Inc., set to report its first quarterly loss since going public, is considering raising billions of dollars in fresh capital to help shore up its balance sheet, according to people familiar with the matter.

The exact amount of the capital hike isn't known, but analysts and Wall Street executives estimate it is likely to be $3 billion to $4 billion. They said Lehman would probably announce the capital raising in conjunction with its quarterly results, due the week of June 16. The amount of new capital under consideration suggests Lehman's quarterly loss could be larger than the $300 million or so that some analysts have been expecting.

 

[THE-BEAKER]

as i said before back in january the us investment banks are bankrupt.

the model does not work anymore.

as the process of de leveraging continues amidst a reduced earnings environment what idiot investors still think there is money to be made in these banks.

expect more right issues until the shares are worthless.

same as northern rock and bradford and bingley.

defunct.

 

[makloda]

Quote from THE-BEAKER:
the model does not work anymore.

You mean like it didn't work anymore in 1982? And the 1990 fallout? And 1998?

 

[S2007S]

Didnt all the talking heads on nearly every financial network say the bottom was in and that the credit crisis was about 99% done with, FOOLS....





How many more billions need to be raised.....this story is FARRRRRRRRRRR from over.

 

[Covertibility]

There's probably a bidder calling up Uncle Ben for a backstop.

The Princeton Economic textbook says when capitalism fails, and it has a good habit of doing so, is to always be bailed out by taxpayer money. Remember the the capitalism creed: Privatize the profits, socialize the losses.

 

[bgp]

lehman said that they really dont need to raise capital , but it's just for the fun of it.

bgp

 

[Landis82]

Quote from S2007S:

Didnt all the talking heads on nearly every financial network say the bottom was in and that the credit crisis was about 99% done with, FOOLS....

Actually, you are the BIGGER FOOL for continuing to listen to these idiots on CNBC.

Congratulations.

 

[ElCubano]

Quote from Landis82:

Actually, you are the BIGGER FOOL for continuing to listen to these idiots on CNBC.

Congratulations.