Well, now that someone actually put their money where their leaks were and ponied up for something that Lehman owns, other troubled firms look to be buoyed by the lift in Lehman confidence.
Lehman shares soared 9.00% on the news to $0.2276 per share and the rising tide of confidence that the assets in the opaque portfolios of financial firms are more of a Polonium-210-slow-and-painful kind of toxicity instead of the quick-and-violent lethality of sodium cyanide rallied firms like Washington Mutual (WM) up a whopping 19.50% to $2.39, its highest point in the preceding 10 minutes.
The news also boosted the second derivative of AIG’s stock price. The rate of the rate of deterioration in AIG’s share price reversed quickly, jumping +5.50%, up from a brutal -24.33% yesterday. AIG indicated it does not comment on the second derivative of their stock price during market hours, pursuant to that firm’s investor relations policy.
- 16 Sep 2008 at 11:15 AM
- Posted in:
Lehman
Barclays – Lehman Deal Marks Bottom of Credit Crunch Panic
By Equity PrivateTags: Barclays, Lehman Brothers
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“AIG”? Y’all are talking about a bank? An “AIG” is where a chicken comes from here in Texas.
Nice usage of “second derivative” in its proper context. Looks like someone paid attention in calculus.
AIG = Another Investment Gamble.
Legendary post.
Note to you financial types: in a bankruptcy (whether liquidation or reorganization) shareholders get nothing!! Keep buying those LEH shares, people.
@5 – didnt pay full attention to enron, did you?
you know shit is about to get real bad when they use the 8 person window on CNBC
@5 — since when is that, numbnuts? you clearly know as much about bk as you do about “financial types”.
Same hypothetical question, different post. If LEH were to hypothetically owe me $ on energy trades, does the deal with Barclays mean anything?
We’re with AIG, so I’m just thinking about butterflies.
@5 Not necessarily true…
Last paragraph is one of your best ever.
AIG is a call on moral hazard.
And it is inefficiently priced
Actually, in a bankruptcy the shareholders get whatever is left over after paying off creditors.
depends what the f it means to “hypothetically owe you $ on energy trades”. that could mean a million things, so go talk to your lawyer.
MAYO
EP, cleverly funny.
sweet Polonium 210 reference
@ 15 you said it best. No pun intended.
EP a lil free time on your hands today? Implied vol, 2nd derivatives?
Please.Don’t.Stop.
My otherwise completely unengaged brain needs the stimulation.
“The news also boosted the second derivative of AIG’s stock price. The rate of the rate of deterioration in AIG’s share price reversed quickly”
you really measured the change of the velocity of the stock price (i.e. the change of the price changes)?
I wonder if Bess knows what implied vol is….or a derivative for that matter
@21…or ever said she did?
21 Even if she doesn’t, it would take only about 90 seconds to explain. So stop thinking that that such knowledge is a sign of a superior individual.
you must be very smart 21.
over in the bond market we call that convexity…. i think
1. that 2nd derivative line was awesome.
2. Bess may not know what a 2nd derivative is, but she makes up for it with her encyclopedic knowledge of WWII porn.
@25 you lost me. where was she talking about derivates with respect to interest rates?
I’m flattered that you read my blog, ep.
I’m flattered that you read my blog, ep.
well, i’m not THAT flattered. you can ignore either 28 or 29, but not both.
@”I’m flattered that you read my blog, ep.”
what are you talking about?
@ 31 fuggeddaboudit.
actually, ep, YOU should be flattered that you read my blog.
you’re in very good company.
I would ask “what blog” but that would be me walking into your free publicity gambit.
@ 33 given that bit of shrewd deductive reasoning, I understand why you have to reach out for inspiration.
Lehman is going in front of Judge Peck this afternoon to get approval from the bankruptcy court for “certain asset sales”.
I feel sorry for Lehman Employees, not only their retirement saving in Lehman stocks have been wiped out because Barclays used tricks to get the best deal out of Lehman’s misfortune (choosing “walk away” before the bankruptcy and then buy best of everything at firesell), now they have to be integrated into Barclays like orphans. Lehman employees now have to work many more years FOR FREE to Barclays to recover their original retirement savings when Barclays could’ve just bought the firm before the bankruptcy to avoid their retirement savings being wiped out. Poor Lehman employees, you have to work like a dog to serve Barclays and be grateful to them for “keeping your job ” (or shall I say screwing you over the sneaky way)!!
I just would like to know how much money the ceo’s and the cfo’s of these companies put in their pockets over the years. I hope they never get another job again they belong in jail…. Period
I just would like to know how much money the ceo’s and the cfo’s of these companies put in their pockets over the years. I hope they never get another job again they belong in jail…. Period
@36 & @37 – Just shut up already and stand quietly on the unemployment line. You’ll see all your old friends there, so, consider it social time.
Now, shoo…off the internet and go clean someone’s apartment. Or go back home to Omaha and tell the folks how slippery NYers are.