This morning Lehman was down by 15%, about half of the decline at Fannie Mae. Lehman’s credit default swap spreads blew out 35 basis points to 320 basis points. That means it’ll cost you $320,000 per year for five years to insure $10 million in debt.
CNBC mentioned a rumor circulating about Lehman but then got all coy about it, the Jamie Dimon-NY Times-Vanity Fair fatwa against rumor mongering apparently having an effect on people squeamish about the threat of being sent to pound-you-in-the-ass prison. Luckily we are not those people. After the jump, we lay it on you.
Allegedly PIMCO is pulling its business out of Lehman.
Obviously, this a pure unsubstantiated rumor. No independent confirmation. No sources even familiar with the matter (although it’s definitely being discussed around the water cooler at LEH HQ). It’s just what people are saying, and some of those people might be Jimmy Cayne “playing Wall Street” and some of those people might be Erin Callan, making shit up because, really, fuck those guys. Or maybe it’s totally true. Who knows? It’s all relative.
Update: Reuters is now running a story saying that PIMCO is reducing business with Lehman.
Update II: Lehman pops a dollar on the word from official spokesman that Pimco continues to trade with Lehman. But riddle us this: have they reduced their exposure to counter-party risk with Lehman or not? Just having some business with Lehman isn’t exactly a vote of confidence.
The pull out method is always the safest.
Why would this shock anyone??? Isn’t everybody limiting their exposure to Lehman right now?
Allianz told Gross to stop scr*wing LEH
Well said, NSD.
no one is crazy enough to comment
Its funny everyone discounts the old “where there is smoke there is fire” concet but doesn’t the market keep proving this rediculous cliche to be true?
We keep smelling the smoke and clearly there is raging fire coming from wall streets big investment banks. It seems the Fed is being urged to take the stance that “No financila institution is too big to fail” and “bankruptcy is an option” so it doesn’t look like we will be seeing any Bear type bailouts again any time soon. That leaves these firms to fend for themselves right now…which they cannot do under these conditions.
There is smoke coming from Merrill, Wachovia, B of A, Credit Suisse and many others.
There is a raging fire burning at Lehman and UBS.
Unfortunately this time there is truth in rumors…Bear proved that to us! Lehman and UBS will too.
http://www.newyorkfed.org/markets/omo/dmm/temp.cfm 3 operations so far today… TOMO boys are busy pushing liquidity today… Something is breaking/broken on Wally Street…
@ 11:04
AGREED 100%
Only problem is this broken down jalopy (Wall Street) needs more than that to fix whats wrong with it.
Pimco should give lehman a houdini after they pull out
7/10/08 10:04:00 *Pimco spokesman says company continues to trade with Lehman-LEH
that was quick…
@11:06 Pimco should give LEH a donkey punch just before they blow.
I propose Pimco gives LEH a full on Tijuana Crime Scene….the donkey punch followed immediately by a dirt sanchez.
If I were Pimco I’d go with the Arabian Hot Pocket…much safer
guys this is not funny. i have friends working at LEH.
how come no one’s on bill poole’s case for rumor mongering fannie and freddie?!!
All Chinese food delivery guys have been instructed to take the money first, hand the food later while @LEH.
Stop with the incessant insinuations and admit that best practice is to just let it happen (i.e. raw dog).
@11:16 It’s funny as long as you don’t work at LEH. Also, if you do work at LEH, you probably desperately need some gallows humor right now since you’re about to lose your job
i think we all know people that have been screwed (pun intended) by this shitstorm that we are all in.
NSD-
Sign me up.
LOL
-mrp
clap clap clap…. bravo!
brilliant thread – I tip my cap every poster above
pimco pulled out .. and then gave leh the chicken cutlet
Bess isn’t afraid to go to prison because she knows she’d be the Queen Bee, like in one of those Reform School Girls movies.
I volunteer for conjugal visits to Bess when she is locked up.
Everyone I have ever spoken to at LEH has been a major doosh. Let it burn i say. Ill be the one laughing while all the LEH tools are on the breadlines.
“I dont make money, I print it”
NEWS STORY FOR N. 4850 (Source: DJ)
11:37 07/10 *DJ Pimco Says It Continues To Trade With Lehman
http://www.portfolio.com/news-markets/national-news/reuters/2008/07/10/pimco-says-continues-trading-with-lehman
Perhaps steve cohen is attempting to superman that ho?
the evil shorts are having a circle jerk bukkake all over LEH
@1140 – hahahahah
“now watch me dooooooooooooooooo”
@11:38 – I actually find LEH people to be on the more pleasant side compared w. most of their peers – just saying
@ 11:38. Don’t be mad because your mama wear panties with dick holes in em
Bess favors the pull out method…
Just spoke with a friend at LEH, he said he’s not worried one bit which surprised the hell out of me.
@11:53, because he doesnt make money, he prints it.
Everyone should be a bit worried right now, the friggin sky is falling on us right now, thanks to a few geniuses who thought they were going to revolutionize the marketplace.
PS, Im sure Gasbagarino is minutes away from an appearance, claiming to have “Broke dat story”
1153′s friend is the long missing baghdad bob.
@1140 – Look, I’m trying to pretend to work. If you keep making me snigger like that, my cover will be blown!
Just spoke with my friend Jesus at the wedding and he said he’s not worried one bit about crucifiction. Surprised the finn out of me.
Simon Peter
@11:17
RE: Chinese delivery guy demanding cash up front…. maybe he should also bring job applications with him. Hell, he’s probably a former Bear employee.
Burning fire at UBS? Where are you living?? With Q2 coming out at break-even, Tier 1 Equity at 12 percent and its private banking ops running great, UBS hardly qualifies for liquidity doubts.
@1204, I asked Erin Callan this morning at my apt if she was worried, she said who cares.
Asshole@11:38,
If you’re able to print money, WTF are you doing wasting time on DB? If the LEH crowd ends up on the breadline, I suspect that you’ll be right there with them.
Hint: People who Boast the Most about money also exagerate the most.
Bess should be afraid of the big house.Just look at how ti messed up Linda Blair in Caged Heat…she’s never taken a shower since!
Sounds like someone works at UBS….. (cough, 12:12pm, cough)
@1214, sounds like I struck a nerve?? You are a tool. Its summer jerkoff, Not a whole lot going on right now. Are you Sykes? Or some low level analyst at some IB who had his summer offer pulled?
Ba bye Lehman! See you in hell!
All thosse years all those absurd bonuses! Just a footnote in history of greed!
Elmer Fuld is sending out messages to his old troops…
“… _ _ _ …”
Anyone able to read the (Morse)code ?
Good news is LEH is hiring deck hands to adjust the Chairs for their equity buyers…
@11:49(1),
“your mamma wears panties with dick holes in ‘em.”
Hahaha. Best I’ve seen today. Hahaha.
“And may god strike me down if this little credit crisis is going to amount to anything”
–seth tobias
Ba bye Lehman! See you in hell!
All thosse years all those absurd bonuses! Just a footnote in history of greed!
@1221, ever heard of Chapelles show?? That wasnt very original
@FUN – HAHAHAHA.
blnde has a crush on FUN
@FUN – any update on Tiger?
@ Fun
12:24 07/10 DJ SAC Capital Still Doing Business With Lehman -Bloomberg
(not quite sure what they mean by “doing business with”, but whatever it is, they are)
Don’t worry at 1 pm gaspo is going to “discuss” what is going on at LEH. And we all know Gaspo does not pass on rumors – right?
@1228, Im sure he will be soaked with sweat.
Over/under for how many times he says”I know Dick Fuld, hes a really smart guy” 4.5
@12:24,
Hahaha. Never heard of “Chapelles show”.
@blnde – you didn’t need to sign in as guest to tell me, awwhhhh. Haha.
@anal – now if that was doing business ON lehman that would support my case a little better. Damn prepositions.
Is Gasbagarino talking down to my people… I want to cut his nuts off.
12:21-
_.– . … .-.. . …. — .- -. .. … ..-. ..- -.-. -.- . -..
–… …–,
-mrp
The sooner the IB’s reveal the true extent of the toxicity in their off-the-books holdings, the sooner we can move forward. Bad or very bad doesn’t really matter. It must be done.
Well I’m glad they failed, never liked them anyway.
CNBC is gonna roll out Bill Gross to squash this rumour.
Mr P,
You got me… Like the smart ass I am, I now have to go get the cheat sheet… didn’t expect anyone to reply in code…
~ … . –.
How is Chi-town?
http://ciphers.navalspooks-ctsandcrabs.us/theme_images/morse%20code%20alphabet.jpg
No mention of Einhorn in all these postings today? Come on guys, somebody get a comment out of him?
And where has Erin disappeared? No comment from her either.
ALL:
I’d like to open a forum open to vote. What is going to happen first?
- Lehman is going to shut down / be bought over / do a BSC
- Or, Fuld is going to get the boot?
- Or, both are going to happen at the same time.
Fuld gets the boot first .. or falls on the sword
12:50-
LOL
Things are well, I am back in NY til Sunday, I couldn’t get enough of the Shake Shack.
Gross was on CNBC, Gasbag is on now… Pretty interesting.
-mrp
Take Under with Elmer Fuld crying off camera…
LEH gets owned again…
Real question is, who has the balance sheet to take on LEH disaster filled asset holdings?
Who wants to own Bakersfield dirt?
@FUN – haha awww damnit! You’ve outsmarted me.
Make blove not war
PIMCO pulled out; now just giving LEH a shocker….
You posters appear to keep ignoring the big picture: This “Blame Wall St” thing has legs, longer legs in fact than it did just yesterday.
Look at it this way: Damn near 300 million people in the US who “Blame Wall St” on one side and a mere few 100K Wall Streeter types on the other. Which side is likely to prevail?
I saw Mr. Gross from Pimco on CNBC at 1pm. That guy is clearly distancing himself and his company from any stigma that is attached to Wall St. He’s 3k miles away in CA too.
Comments like “Elmer Fuld” & “Bakersfield dirt” and the @1:06 rediculus poll indicate that most of you posters don’t really appreciate what is going on in Washington.
Washington is where the decisions that affect Wall St the most will be made in the near future, not in Fuld’s or in Schwartzman’s offices.
Most everybody in the USA ‘hates’ “Wall St”. I hope we all know that by now because that ‘hate’ is pretty damn strong.
Screw the USA. Manhattan is an island.
1:42 said “Damn near 300 million people in the US who “Blame Wall St” on one side and a mere few 100K Wall Streeter types on the other. Which side is likely to prevail?”
The 100k side, at least till the time the 300 millions are ready to move to the barter system economy – exchanging labor and self produced / mined goods in exchange of other goods.
@ 142 – thanks for being the wet fart in what was a pretty entertaining thread.
As for your particular flavor of hate, it is the same as so many thoughtless obvious answers. Everyone hates wall st. is an easy comment that just isn’t true. Everyone hates that their 401k isn’t going up, but hogtie wall st and convince all the smart people to go do something else and you’ll ensure that will continue. And since that is the social security contingency that’s been put in place years ago, no one in washington is looking to hold the bag of baby boomers retirement (which causes enough long term liabilities in medical care alone). So before re-telling a usa today headline or whatever other stunning moron got you onto the people hate wall st and calling for a return to the barter system….please think first, or move to cuba.
@1:42,
You sound like a Christian about to join the Roman Games when Nero was warming up…
Wall Street needs to merge with Cuba in order to survive.
@1:47,
Another idiot with a smartass, off-the-cuff, and profoundly stupid technical come back.
The first big thing that is going to come out of Washington will be new Fed oversight of IB’s and publicly-traded hedge funds / PE firms. That will definitely put a crimp in the leverage style of Wall St, and that will be for starters.
Keep on laughing “playuh”@1:47.
Let’s not insult Cuba now, kids.
1:42 sounds like he has as much knowledge about Wall St. as the 9/11 conspiracy theorists have about engineering and physics.
And @ blnde – woah woah woah, no one is making fun of the land of the mojito, the perfecter of the pork sandwhich or producer of tremendous baseball. Just sayin if he wanted to be a communist it’s the shortest commute from here.
Measured by my taxes, NYC is a communist enclave.
Who’s gonna support the hoodrats at HTZ across the street from LEH?
~LexSteelz
@1:42,@2:02 here.
Sorry. I have to drop off for a bit. Have a haircut appt at the barbershop shortly.
@FUN – Oh no worries. I was just making a preemptive strike.
It is only like a 3 hour 15 min flight.
Get a room.
2:02 said – “The first big thing that is going to come out of Washington will be new Fed oversight of IB’s and publicly-traded hedge funds / PE firms. That will definitely put a crimp in the leverage style of Wall St, and that will be for starters.”
And the banks would do nothing? What sparked the off-balance sheet vehicles? Regulation has always be a step behind the money folks. How about this. Banks offload their ‘leveraged’ positions in hedgefunds where they take up a 49% equity position?
How about hedge funds becoming the new ‘investment banks’?
I am just throwing up random ideas over here. Who knows what will happen? FDR and the other commie brigade tried it post the 1929 crash. And after every cycle, the same is always attempted. You think you (or your current day commie brothers) are the first who have felt so about the finance folks?
Go back to gawker/moveon/dailykos/wherever will you?
@2:25, You’re right; we don’t know what will happen, but something will happen. I think we all know that leveraged positions are looked at with an unflattering flashlight down in Washington these days.
2:37, I dont disagree with that. All I am saying is that this ‘clipping the wings of greedy financiers’ things has been going on for a very long time. And the finance people manage to find a way out every which time. And I am talking of times when things were way way worse than now. Notwithstanding all the whining, American are leaded the most charmed lives they have ever had ever before.
Given past experience, I have absolutely no reason to doubt the fact that money will find it way out some other way. Will the same investment banks that are currently in news find ways out? Probably not. But they money (and the people interested in that money) will find other avenues beyond the reach of the envious masses to continue minting fortunes.
Institutions will change, the players will change but what will not change is the fact that there will be a tiny subsection of society which will aggressively chase money and make obscene amounts of it.
Well said, 2:25
You can drop boulders in the river, but the water will just flow around. Why do they even try…?
leh is like an airplane without a partner…damn. anyone think einhorn covered his short yet?
@blnd – you two timing on me with fun?
separate topic – do you think jesse has p-envy on obama?
Cluz! It’s been forever…This is awkward… FUN has been entertaining me lately…I thought girl had dibs on you…
obama makes my dillz run and hide for the hillz
yeah, 2 margarita lunch…
Always cool to be the new guy!!!
@blnd – dibs? c’mon now! I’m a free agent. now you want to talk about awkward, the whole 1-2/girl thing is a little sketch – and I don’t speak french ( ;
haha oh fellas…enough of me to go around :-D
@blnde Drop the ice cream, that way you’ll get smaller.
I love the DB match-ups, everyone breaks into twos and each couple go in their own direction
@blnde – look at the ruckus you cause on db.
@cluzo – dibs??? Oh damnit-to-hell!!!
//jinx?
@fun – can’t you just let a brother ride the obama train while the engine is still on the tracks? I’m not sure how long the “effect” will last, I have to capitalize now. but she did say there was enough to go around; soooooo..I got first dibs!
@4:02pm – I would but who can resist Mr Softee? Kidding aside, I think it’s time for you to catch your bitter bus on out of here now.
Oh FUN I live to cause a ruckus…
True Cluz, technically you were here first…
hahaha you guys are too funny. I needed a good laugh today too.
@blonde So I guess I’ll take the bus to the trailer park to make your parents some company.
@blnde – sure he’s been here longer…apparently mets style, hands squarely around throat!
@cluzo – the obama train will be around longer than the 2nd ave subway, no worries.
//what? They still haven’t built that shit yet? Wasn’t it started right after we bestowed the fire water???
cluzo & fun – you’re both too late. blndbnkr is the real reason a-rod’s getting divorced.
Ouch. You called me trailer trash. Stinger.
@NSD – Dude, I WISH.
Sketch implies grey area, Cluz. The remote possibility of which was rendered nonexistent by 1-2′s questionable attendance at Fashion meets Finance.
In all seriousness,
@BB, hit it. He’s handsome and funny. Then maybe if he’s up for it include FUN in the fun- fun times for all 3 of you.
@ Cluzo now you really owe me a Makers
Really girl? I knew the funny part. Good looking out.
@girl – from out of nowhere, NICE. okay, makers are definitely on me…btw, when is our next gathering? I am starting to go into dive bar withdrawal (@anal and @1-2, get on it).
@girl – makers? Cheers to you…despite the lack of endorsement!
@blnd – think usher (without the kids/wife) or pharrell (without the tats)
@fun – mets, c’mon. I’m a yankees fan since the munson (r.i.p.) days.
@nsd – why are you trying to kill the buzz, it’s thursday afternoon, the weekend is here!
Nice, Cluz. NICE. BTW did you vote for the ‘Stache??
I’m out kids…have a fab evening
@2:45 – Here’s the problem. Finance pays better than government and, in many ways, gives its high achievers as much power as anybody but the very highest of politicians. It’s also a lot less public and you can have a lot more fun, hedonism-wise. :)
Therefore, you’re always going to have more REALLY smart people in finance and law (financiers need lawyers to help them design around regulations) than you will in government, period. Since that’s the case, the government will always be playing catchup. So long as governments can’t punish people for breaking laws retroactively, it’s a losing game for them. They basically have to wait for them to get arrogant enough to break laws that are already on the books.
Of course, when Paulson and Bernanke are done empire-building, they’re going to be able to point at a transgressor and say, “He broke the *spirit* of the rules, even if we can’t prove anything. Take him out and shoot him.”
M
i said it on this board when BSC was executed…
investment partnerships have full control of the financial system.
it’s almost pure comedy that they can short the crap out of prime parents and then spread rumors that they might pull their money for fear of “counterparty risk” causing the stock to crash.
i love wall street slang. (((rolleyes)))
lol don’t look to politicians for help.
they have all their $ invested in hedge funds.
blind trusts, right?
So, to summarise: Lehman Brothers = the new Bear Stearn?
Lehman is the new red
It’s time to re-crack your Den of Thieves textbook…there is a new Predator’s ball and the players are a different breed with more money and power consolidated in fewer hands. When this saga plays out Miliken and Boesky might be awarded reparations.
lol @ 10:32am
i’m still trying figure who thought it was a good idea to hand out mortgages to anyone with a pulse?