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

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.
 
Quote from simon1080:

word is they've started unwinding positions.
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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.
 
Quote from bwolinsky:

Lower, but I'm more concerned about BAC merging with that dog called Merrill.
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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?
 
Quote from KrispyKreme50:

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

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