LEH is a great franchise and Wall Street will not let it go the way of BSC

Anybody who works on the Street would tell you, off the record, that no one would touch a failing IB/BD unless they were persuaded/commanded to by the higher powers that be ie. the Fed/Treasury. There is no such thing anymore as a "great franchise". Everyone is holding crap paper, and the bond market remains illiquid. This ain't over by a long shot. Expect to see more firms run into this situation.
 
This by far is the single most stupid thread on ET... EVER!!! HOUSEWIVES, TRAILOR TRASH, ...give me a fucking break. Do THEY know WHO LEH is or do they even CARE????:mad: :confused: :eek: :mad:
 
I dont think any firm in wall street will let them succeded
Look at GS
Bear sterns is gone
Lehman is gone
next Merril lynch + Morgan Stanley
After that it will be come a monopoly for goldman sach.
I dont know what will happen on monday or sunday night but i can sure tell you
Goldman sach is gong to report very bad earning so that it can take the whole financially sector lower and finally be the only company which is the strongest will be left will be Goldman Sach group
People have already lost fate in the financial system.
And mutual funds are dumping the brokeges stock left and right.
I own 300 Mer and 100 shares Leh
I just hope there is some short covering so that i can brake even and get the fuck out
I dont trust these people on wall street any more MOTHER FOKERS
Leh book value is $16 GTFOUT now trading $3.50
Mer book value Is $20 WTF now trading $17.10
Greed , liar monopoly strength power all ,s fucked up on wall street
 
There is something here you people are not considering. wall street firms are heavily dependent on human capital. most LEH employee's own stock. if they are sold at $1 the employees would have lost a vast fortune and they are likely to hate whoever took them under, its quite possible they will seek employment in another firm. jamie dimon realized that and upped his bid for BSC by 5 times. shareholders could also vote down a really low deal.

Perhaps I'm wrong and they wont be sold at a small premium but I will be surprised, specially given Fuld's tendencies and the ease they had in raising $4b in equity offerings. a equity offering of this size would mean an higher than 100% premium
 
Quote from 1flyfisher:

I don't gamble. I will pass on anything to do with LEH at the moment. I don't let greed direct my trading. People jumping into LEH long are motivated by greed and hopes and dreams that it will recover. If it does recover I will buy LEH at $6-$8-$12 or a higher price and ride it up. I don't try and guess bottoms in troubled companies stocks. I employ smart value investing ala Graham/. That's why I will Buy it at a higher price. A value trading/investing strategy trading fools will never understand.
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you are correct about trading fools but your assessment of the situation is dead wrong.
if you are into "smart investing ala graham' u would have bought on friday as an investment.
 
Quote from oraclewizard77:

Friday, September 12, 2008 - 2:36 PM PDT
Analyst: BofA, Lehman a 'natural fit'
Sacramento Business Journal


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As prospects look increasingly good that Bank of America will participate in a buyout of Lehman Brothers this weekend, a prominent analyst said the combination makes a lot of sense.

?There is a natural fit between the two companies,? said Richard Bove, an analyst with Ladenburg Thalmann.

Bank of America is widely reported to be assessing a transaction that would rescue the troubled New York firm. Observers are confident that BofA chief executive Ken Lewis would cut an attractive deal for his bank as the Federal Reserve and U.S. Treasury work with Lehman to resolve its financial crisis.

Lehman (NYSE: LEH) needs BofA?s lower borrowing costs and its ability to hold Lehman?s commercial loans on its books. But more importantly, Bove says, Lehman can access BofA?s 68,000 commercial customers to sell capital markets products. Lehman?s fixed-income business would also get a big boost by being acquired by the nation?s largest credit card and mortgage company, given the amount of those loans packaged and sold to investors.

From BofA?s perspective, the largest bank in California would get access to one of the best fixed-income trading desks in the country, Bove said.

?It immediately becomes a first-rank player in the equity investment banking sector,? Bove said. ?It gains five years in its pursuit to be the nation?s number one underwriter.?

But more than that, cutting a deal to buy Lehman would underscore BofA?s ability to navigate treacherous waters in the financial storm. The bank recently acquired troubled mortgage lender Countrywide Financial Corp. for a price that some see as eventually being viewed as a steal.

Bove sees a potential Lehman deal as another huge win for Lewis.

?The bank is emerging as probably the biggest beneficiary of the disarray in the financial markets,? Bove said. ?Bank of America will be stronger, larger, and command more business than ever before once this debacle is over.?

BofA (NYSE: BAC) is the No. 2 bank in Greater Sacramento as measured by deposits, holding close to one dollar out of every five.

This story was reported by Mark Calvey of the San Francisco Business Times, an affiliated newspaper.

{Full Disclosure, I bought 200 shares of LEH today.}
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BoA would be mad to take on LEH and all the associated baggage. Better to grow the new business areas by recruiting the top LEH employees and their contacts.At the end of the day that's the only of value at LEH
 
Quote from zdreg:

you are correct about trading fools but your assessment of the situation is dead wrong.
if you are into "smart investing ala graham' u would have bought on friday as an investment.
More...

went long on friday but my confidence on this trade is extremely low, specially now that the NY fed is involved. luckly my position was quite small but I'm ready to see the stock open at $1. we will see
 
They finally did something smart. Head of the NY Fed took the surviving assholes, put them in a room in lower Manhattan, and said, "you fix it."

This needed to be done. You don't get to steal all the money all the time and go to the Treasury for a quick fix.

Only way this can truly end is some catacylsmic event, like some drunk laying in his own puke for eight hours. Mr. Market will recognize the tell. Obviously, BSC and LEH weren't big enough.

C? Will that do it?
 
Something that will almost certainly happen is paulson and the fed yelling on MS,MER,GS ears 'RAISE CAPITAL SELL ASSETS now, I dont care about your stockholder' they might very well have to comply. meredith whitney completly missed this one, this could be the end of the investment banks as we know them
 
Quote from gangof4:

who the hell is 'wall street'? is there some group by this name
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Yes, I am a member!

We hold meetings the third Tuesday of each month and wear red beanie hats and sing chants.

We control the world through blackberry text messages between our members.

Next week we are targeting the entire country of England to bring the pound to it's knee's.

:D :D :D
 
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