Heads up on LEH!

Quote from mokwit:

Thye real real news is that they won't be forced to.

So far we have had 100BP of rate cuts and "treasuries for trash" extended to IB's just for LEH (FED shareholder and Fuld sits on board of NY Fed who opened the spigot). We have seen MBI and ABK keeping their AAA rating, we have seen AAA rated CDOs in default keep their rating if they are part of an index, we have seen a FAS 157 clause delayed, we have seen the SEC say if a valuation is distressed you can look on that as temporary and book it at what you like, we have seen declines in value of bonds issued booked as "revenue", we have seen all kinds of accounting rules relaxed or liberally interpreted so that insolvent banks don't have to declare their insolvency. etc etc etc Wholesale corruption aided and abetted by the Government, SEC FASB and a host of others.
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LEH should be at $150.00 :D
 
Quote from ElCubano:

LEH should be at $150.00 :D
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The fact that it has to increase capital AGAIN within a matter of weeks DESPITE ALL THIS tells you the real story, without all this it would have to declare insovency on both a liquidity and negative equity basis.

The va;lue of LEH would be less than Zero.

Note these special deals are not available for homeowners who overleveraged.
 
Quote from sharp10:

7.33 EST

FT reports that LEH lost between $500M and $700M in Q2 on various hedges
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Word on the street is they were short oil and got absolutly crushed. Problem is they were using the Fed term facility loan to speculate and now that money is gone, hence the need for the emergency capital.

GS was said to be the counterparty, so they should have a damn good quarter.
 
Uncle Ben will find a way to let them off the hook if that is the case, after all, they are family.

Using the funds to speculate on leveraged commodities bets is hardly within the spirit of what the TAF is for. LEH deserve to fail if this is what they have been doing and Bernanke should be held to account for funding this.
 
Some hedge funds money are coming from Mideast, they can only be used to shot US financial stocks.

They brought down the WTC. This is the time to bring down the real financial towers.

We are in war.
 
Quote from Cutten:

I disagree, I think the best fundamental traders could have and probably did.

Remember the difference between a typical fundamental analyst, and an excellent one, is as big as the difference between a typical chartist and a great trader with genuine feel for the tape. The difference between the world's best fundamental trader, whoever that is, and a good hedge fund manager, is as big as the difference between Michael Jordan and a typical NBA player. It would not surprise me at all if someone had shorted BSC on fundamentals and held all the way down.
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What I meant was; Back when BSC was still at 60-something, I'm sure that top FA experts could have put forth rock solid reasoning as to why BSC <i>might</i> soon collapse.
However, they could have also simultaneously applied that <b>exact same reasoning</b> toward 20 other financials that didn't go belly up. I really doubt it was possible to specifically single out BSC based on publicly disclosed info alone.

While my posts to this thread up till now have proven themselves highly useful to those who were paying attention, I avoided making any outright predictions... UNTIL NOW:

136 million shares today. Over 100K Puts today. This is no ordinary bear raid- It's the real fucking McCoy! LEH is in SERIOUS FECAL MATTER, and that massive volume you see is those in the know rushing for the lifeboats. <b>LEH is going to single digits baby, official RM prediction!</b>

Disclosure: I'm short LEH (of course), but I only have access to the same information as the rest of you. I have no rumors to spread. All I know is this: The insiders showed their hand today, and that hand reads: I-N-S-O-L-V-E-N-T!

SELL, MORTIMER SELL!!!
 
Just to add a little something here: While it may be true that I haven't made an embarrassingly awful market call on ET in years, I don't exactly have next month's WSJ in front of me, either.
(Future-me did indeed hop in the DeLorean to bring present-me a few generous gifts... but they were all high-suction fembots. No market data, unfortunately.)

LEH is obviously a very high risk trade. Nothing is 100% certain, and I'd hate for anyone to blow up on one of my recommendations. As always, please only risk no more than you can afford to lose!
 
My eyes must be playing tricks on me. Did anyone else see leh gain 10% in after hours as reported by cnbc? i dont see it....

Lehman's stock took a beating Tuesday, closing 9.5 percent lower. But the firm regained its footing in afterhours trading, which saw its stock climb 10.5 percent.
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http://www.cnbc.com/id/24956803
 
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