Barclays has walked away from the negotiations on the fate of beleaguered Lehman Brothers, balking at the government’s refusal to provide guarantees that would shield Barclays from Lehman losses. Bank of America continues in talks, sources say.
We hear that Lehman CEO Dick Fuld is complicating negotiations, saying at first thatthe deals being worked out at the New York Federal Reserve would not benefit Lehman shareholders. He had threatened to pull Lehman out of talks and keep his investment bank independent. Many believe that survival as an independent entity is simply not feasible for Lehman, however. They predict that if a buyer or buyers for all or a large part of Lehman cannot be found the firm will have to be liquidated.
Today Fuld seems to have largely given up on autonomy for Lehman. He is said to favor a deal with Barclays in the lead and a government guarantee supporting the transaction. This position may risk alienating Bank of America.
Please keep in mind that the situation is very fluid, with deals apparently being reached and then collapsing.
Lehman Heads Toward Brink as Barclays Ends Talks [New York Times]
Barclays Ends Talks to Buy Lehman; BofA Still Involved [CNBC]
Barclays Walks from Lehman Deal [Wall Street Journal]
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
DF is insane
As a large shareholder, I’m sure Dick knows what is best for shareholders.
Plus he is a member of the tribe, he should expect something out of the deal
http://cgi.ebay.com/LEHMAN-BROTHERS-AIG-WAMU-BAILOUT-DOMAIN-NAME-PACKAGE_W0QQitemZ320299216040QQihZ011QQcategoryZ11153QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
This thing is going to sell.
“it’s the end of the world as we know it, and i feel fine”
love,
(former) lehman brothers employee
i am against putting taxpayers on the line so that a foreign bank can make a handsome profit.
- B. Hussein Osama
@4 F Off. I bet you have a lot of friends, nice guy.
Remember karma’s a bitch and she’ll get you too
Reuters:
“At Lehman’s headquarters in midtown Manhattan, employees were coming and going throughout Sunday morning.
Some entered with what looked like empty duffel bags and gym bags and emerged an hour or so later with full bags. “
Fuld has completely fucking lost it. He’s probably in the middle of an emotional break down. He can’t separate his own identity from that of the firm, so he figures he might as well push it to the brink if Lehman is over his whole world is over and he’s go nothing left lose.
The Fed has gotta bring in someone else to negotiate for Lehman, Fuld has clearly lost all grips with reality. The same thing happened to Skilling summer 2001. But this time there isn’t even a Ken Lay type empty-suit to sign on the dotted line of the BK paper work.
http://cgi.ebay.com/LEHMAN-BROTHERS-AIG-WAMU-BAILOUT-DOMAIN-NAME-PACKAGE_W0QQitemZ320299216040QQihZ011QQcategoryZ11153QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
This thing is going to sell.
I thought Fuld was not at the meetings?
Fuld has to remember that when a company is “in the zone of insolvency”, the directors have a fiduciary duty to debtholders, and I believe this is a personal liability…. He should stop playing chicken or his Fuld will be cut off.
@5 Thats probably why Bob Diamond supports McCain
@ everyone
dick fuld is da man. fuck’em. he walks with $200m+
i asked before, i’m asking again:
who’s putting the screws on leh? they have all the liquidity they need from the fed i would suppose. yes they are insolvent but so is everybody else. why would moody’s pick on them?
“Sources” for Dealbreaker include reading the New York Times.
I would do the same if I was Fuld! He probably has more than $40 mm in cash and he needs to stand up for his employees or screw the whole system. I say he should file chapter 7 than sell it for $2.
@ 13 Lehman’s counterparties. If Lehman isn’t sold or in bk by morning, the number of couriers carrying default and termination notices for all its repos, swaps, etc. to Lehman’s headquarters will far outstrip the number of employees arriving there.
wow…this might not end well at all.
@13 Good question. At end of day, Fuld and directors represent shareholders – not debt and certainly not American taxpayer. Why would they (or anyone) accept nothing?
Bankruptcy/receivership is better option in that at least reasonable chance they can salvage some value for equity.
Feds can;t nationalize company at the end of the day. They can only push – in this case on a string.
you gotta know when to hold’em, know when to fuld’em.
So what are you saying..LEH should say F all of you for not reaching a resolution, let us go down and we’ll take you down with us?
even german media is now citing DB as a major source.
for those of you with a good command in german:
http://www.spiegel.de/wirtschaft/0,1518,578161,00.html
hey i’m gonna go catch some football. can somebody shoot me an email in the unlikely event that anything happens? thanks guys.
bigswingin@lehman.com
dealer desks working on netting out leh positions. netouts contingent on leh declaring bankruptcy midnight tonight
What do employees get in BK?
@21. Yes. The market has already decided that Lehman’s done. The only thing Fuld can salvage is his dignity on his way out the door. A deal pulled out of his bag of tricks last minute is much cooler than dying an ignominous death via a prolonged bankruptcy.
-17
@16/17 that’s why the fed’s programs are in place. as far as we know fuld can pledge all the jnuk on the balance sheet to honor counterparties.
@19 you think Fuld is helping his shareholders by being intransigent? That’s worked really well so far. I wouldn’t be surprised if it turned out Einhorn had Fuld under mind control cause the only one Fuld is helping is the shorts. Fortunately, I am one, so I don’t give a fuck. I hope he takes MER down with him. Just as long as I can figure out away to get the money out of my brokerage account and on to the last slow boat to Norway.
@26 but what could he possibly come up with now…is there anything left in his bag?
What a sad end this is.
This can’t be good for anyone. Less firms, less competition, less places to work. I am failing to see any joy in this as expressed by @4.
@16
You mentioned that funding requirements would be lowered in the next 12 months…what do you know?
Share Please…
No negotiation really starts until one party shouts “fuck you” and hangs up the phone. Then….and only then….does the real negotiation start.
~Cheever Kissass
Negotiator
@25
I don’t think they get anything :(
I know they’ll pull through, most are smart and talented people, they’ll be just fine.
Rumor has it some bulge brackets are preparing to defend counterparty exposure through legal channels, traders already being alerted
@32 appreciate your support…
just wondering about basics like health insurance!
I am a…
LEH Spouse :(
@ 29 others will step in so don’t you worry. it’s just one big name that’s going to be wiped out
@27 what fed programs exactly are in place to deal with this? last time I check the fed is telling lehman to f*ck off. pledge junk worth zero? or completely illiquid junk? that’s not going to get very far.
@34 hang in there
@ 34, not sure about health insurance. but employees will definitely get years supply of mayo.
It’s f’ing over.
Dickie Fuld deserved this and more- sorry for all the rank and file who got screwed but this is why when you get shares as part of your comp at an IB you should blow it out asap.
These guys played fast and loosed with thier disclosure to shareholders- go see the CNBC interview with Einhorn. Callan LIED to him about the mark on a private equity investment that suddenly conjured up profit and then when found out said “oops we thought that the outside investor HAD made that investment” pure bs. All this mind you signed off on by Fuld. Then when the truth comes out he fires Callan.
We the tax payers have been providing credit to LEH, GS, MS, MER etc through the PDLF and personally, I’m quite sick of this shyyt. What do we get in return for our largesse??? Zero!
I spoke to a good friend of mine at LEH on Fri. and the response I got was teh following: “we are still here cranking, I mean, I’m busy as shyyt- people here think we will be fine, I’m mean it’s not liek we are Bear Stearns or anything- we have a real business”!!!!!
This my fellow onwatchers is called delusion. All that follows is simply the smoke clearing and viewing the size of the gaping hole that was once LEH.
lemondropkid
@37 and @35 thank you.
Going to take a break from this for a while.
Hopefully when I get back, some miracle has occured and @38, I don’t mean Miracle Whip.
@34…
if it comes to that…
http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML
HTH
@40
Shoulda married an entrepreneur and not a corporate whorebag.
@42 Had just enough time to see your comment.
You don’t know my spouse so go F yourself. He worked his way up on the street for the past 20 years and never kissed ass once. He got ahead by hard work and was never anyone’s whorebag. Take a look in the mirror at yourself before you go commenting on people you don’t even know. A Hole.
How’s your married life? Bet your wife hates your guts. Check her email to her friends, you might be surprised what she really thinks about you, Mr. Entrepreneur.
@ 25
They get screwed like employees in any other business that goes belly-up, only worse due to (a) pay that had been coming largely in stock now worth zero; (b) asset bases including large amount of stock now worth zero; (c) a skill set now worth zero due to imploding industry.
Lehman employees are going to suffer enormously.
I think the reality is that Fuld et al have already lost everything they can yet are still quite wealthy. Middle management have lost a lot of wealth and are harder to re-employ at other firms for various reasons like they are expensive and have rivals there -so they lose in any event. Junior people don’t have the wealth to lose, and have skills, mobility etc that mean they will all end up fine even if it takes a while.
So the only thing Fuld et al have left is payola. How much are the various parties willing to pay out to them to avoid the nuclear option of chaos in the markets tomorrow, starting in Europe. Would the European Central Bank intervene in some way rather than risk such a thing? Would the Fed? What happens if Fuld tells Paulson or whoever delivers the news, “thanks, I’ll need to think it over?”
Who will blink? I think the cards are with Lehman at this point because if they don’t play along there’s at least some risk of a broad financial panic.
I think the reality is that Fuld et al have already lost everything they can yet are still quite wealthy. Middle management have lost a lot of wealth and are harder to re-employ at other firms for various reasons like they are expensive and have rivals there -so they lose in any event. Junior people don’t have the wealth to lose, and have skills, mobility etc that mean they will all end up fine even if it takes a while.
So the only thing Fuld et al have left is payola. How much are the various parties willing to pay out to them to avoid the nuclear option of chaos in the markets tomorrow, starting in Europe. Would the European Central Bank intervene in some way rather than risk such a thing? Would the Fed? What happens if Fuld tells Paulson or whoever delivers the news, “thanks, I’ll need to think it over?”
Who will blink? I think the cards are with Lehman at this point because if they don’t play along there’s at least some risk of a broad financial panic.
@44 It’s (c) that is of the most concern…and should be to anyone on the street.
Developing story at http://www.reuters.com :
Special U.S. trading session involving credit, equity, rates, forex and commodity derivatives and aimed at reducing risk related to Lehman bankruptcy opened between dealers and Lehman counterparties: ISDA 2:49pm EDT
Found this on another forum
Chronology of a LEH long
Fri: Oh yeah! Let’s load this baby up
Sat: Don’t worry baby. Fed’s gonna save you. They have to.
Sun morning: Have faith baby. Fed will save you.
Sun afternoon: Oh shit baby. Barclays have given you the FU. What now?
Have faith baby. Have faith.
Sun evening: FU baby! FU!
Monday morning: Radio – “Police has arrested a naked man covered with
mayo for public disturbance. No weapons were found on him except for
what seems to be, a shamwow”
Derivative traders open session to reduce Lehman risk
http://www.reuters.com/article/businessNews/idUSN1444498020080914
Wall Street Prepares for Potential Lehman Bankruptcy Filing
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeWvsWPyOd1c&refer=home
@34
http://cobrainsurance.com/
@28 – No, Fuld obviously overplayed weak hand. Still, no one accepts 0 versus the possibility of something more. So only logical choice is to go on and let it hit the fan. He has liquidity, this can go on for many months. As long as paychecks clear and the phone company gets paid. Which they will. Orderly, liquidation and more intelligent auction process for parts may likely result in shhldrs and debt ending up with at least significant piece of bad bank at the end of the day – probably worth mroe than $3.65 and certainly not less than 0.
@43
You are in for a wild ride. Don’t let these jackasses upset you because you need to be on top of your game for your husband. He is going to be devastated and its gonna take time before he realizes exactly what happened. You need to keep your cool. Obviously this very directly affects you as well, but he’s gonna have issues you can’t even imagine. Just get ready to deal with it. And don’t lose your cool over the small stuff…….regards….
CLARIFACTION FROM @4
I AM ACTUALLY A FUCKING LEHMAN EMPLOYEE YOU FUCKING IDIOTS
it’s out my hands. that was the sentiment, morons.
it doesn’t look good
“Trades are contingent on a bankruptcy filing at or before 11.59 p.m. New York time Sunday,” said the statement. “If there is no filing, the trades cease to exist.”
this is funny. is this sports betting? wtf happened with the wheel of capitalism, the place where we raise money for the economy and all that crap?
Does anyone know how the auction for Neuberger went?
-NB employee
Man are you guys loopy. Look, Fuld is holding a busted flush, period. He can’t simply go say ‘go fuck yourself’ because here its Bernarke that i sholding the bazooka in the form of teh PDLF – if Bernarke says, yo know what we are pulling the PDLF and bolstering or moving said liquidity measure over to the TAF- its game, set, match for Fuld and for that matter a rather punitive smack on the ass to the rest of Wallstreet for not taking these 7 months as a timeout to straighten out this shyyt.
I think this will be the ultimate trump card played this evening before Asia opens for trading. Bernarke via Geithner will give the following edict:
“You boys get on board and bring this thing in- whichever way possible or I will give you all an immediate haircut that will take some of your scalps with it!”
I see the bad bank get funded by MS, GS, MER and BAC and BX or KKR buying the good bank with Fuld stepping down upon deal being signed off. KKR gets public shell or BX gets bigger IB, who gives a shyyt- at least this way the remaining IBs cant bitch that teh good bank went to a “competitor”. Best part is that since KKR would be a cash deal the get a sweet basis!! LOL.
Watch Kravis pull this off and come out smelling like a rose while effing over Stevie.
lemondropkid
@55
At least you’ll have the summer off.
#49
What forum is that?
hahahah
@42
d-bag.
@43, Well said…
@42 you’re an asshole of epic proportion. And 43′s definitely right, you probably couldn’t find 2 people who actually give a shit about you if it was your last task in life. Oh, and don’t worry I am sure you think you have too many friends to count. You’ll never know until you need something and I am sure you’ll be shocked when the only one who comes to help you out is Karma who stops by to finally give you that last kick in the ass.
Best of luck 43, it really sucks…
@43, 54 is right. It’s going to be bad for the next couple of weeks and months. I’ve got a close family friend that works at LEH, and I’m worried about them as well.
http://www.lehmanresumes.com
I am very concerned about the overall panic, mistrust and jeopardy in the financial world which has caused domino-effects and will do that probably further for a while on the public markets and in the real economy. Will trust ever come back to the Investment Banks and other financial institutions which have played or still to my surprise play a key role in the investment world? If you can not trust e.g. the real nature of the securites you buy or realize that advisory from Investment Bankers provides you with more or less no value (because they also do not understand the markets because the incentive system world wide is wrong-fees for banks instead of performance for clients and then performance fees for the adviser) why should you then return to do business with them? I think that it will take years if trust will ever come back to them and from my experience from the last years I can say that the risks of investing with Investment Banks or in certain types of securites never rewards you with the right return potential (and effective outcome). In most cases the best Investments can be done without help from these financial institutions. The sad thing is that Lehman will probably not be the last bailout and that some others will follow and that will be tough for the public securities markets. But who will punish the guys who have contributed to these massive losses by overriding the US real estate market? They would make a break with the too much money they got compensated and will come back in a few years and will do the same shit for other institutions. Banking Business in my perspective is sometimes not correlating with doing serious investments and financing and understanding of the real natures of the businesses they invest/finance into it. Sorry for Lehman, other banks will do behind the curtions to knock-out this rival. My final question is which bank has ever provide its clients with good performance and fair services and which one is trustworthy?
@58 If shdlrs get zip, why does Fuld give it up? Because Geithner is going to say nasty things about him?
Fuld believes, right or wrong, that there is value above zero. Nothing in it for him to fold hand and walk away. Feds can’t take over the firm without due proces of some sort – LEH is not a chartered bank. So . . . this will be going on for months unless something gets pulled off in the next few hours.
Published reason for Barclay’s walking makes no sense- May be the fifth set but the match ain;t over yet.
A net-out session is a surprisingly intelligent move, but damn frightening.
Is Citi out of this party also? Just saying.
Any ideas where this stock will go when the markets open based based on current information?
@69…down. Have you heard any news since friday’s close that could be perceived as positive?
@15 are you a total moron? Or do you just work in the back office of a retail bank branch? Chapter 7 governs the liquidation of an entity. Operations of the entity immediately cease unless the trustee agent chooses to contineu them. You can’t then sell the entity afterwards. I think you’re referring to “Chapter 11″ which allowes protection from debt holders during a reorganization phase.
@66 If Bernarke via Geithner pull the PDLF, its OVER for LEH. This is the sole source of their ‘real’ funding.
Everything else is via credit lines and capitalthat upon a true mark to market (S&P or Fitch downgrade to below Single A- which they have already stated they will do if no deal this weekend) goes dodo bird. This is why I say Fuld is holding a busted flush and he cant count the cards on the table- he thinks that there is some 6th street but sadly 5th street is the last stop.
Bernarke is holding ALL the cards here. LEH is small change all things considering his (Bernarke’s) next 4 mnths navigating this train wreck of an economy into teh new administration. With fed funds alrady at 2% he has precious little room left. And he wont take kindly to Dickie Fuld trying to strong arm him via a crazy man all or nothing gambit.
Bernarke has to decide whether he saves Wallstreet or the US consumer- he has tried to do both up until now but he is now at the Rubicon. And I doubt he will side with Crazy Dick.
lemondropkid
What effect does the special trading session have on market openings tonight/tomorrow? Will it lessen the impact?
14′s got it right. just change the timestamp and they’ll never know!
OKAY NOW THIS WAS A SMART IDEA….
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299542422&_trksid=p3907.m32&_trkparms=tab%3DSelling
Much smarter than that other fucking ebay listing.
@ 70 — It just wouldn’t be a typical Monday of late to not get something to make people go “huzzah!” and jack up prices on Monday.
That being said, barring one of these guys pulling a golden rabbit out of the hat in the next 8 hrs, it could be a down day. On top of that, it better be a big golden rabbit, because their ability to get people to go bonkers and buy is diminishing each time they need to try and buttress confidence levels.
It’d be nice to get a nice 9:31AM plunge on good stocks which would present a nice little buying opportunity.
You guys are over worrying for the LEH employees. These guys can get jobs elsewhere easily.
Anyone any thoughts on what a rescue deal would do to the share price?
B of A’s OUT – it’s over
Bloomberg TV reports that Bank of America just walked away.
You guys are over worrying for the LEH employees. These guys can get jobs elsewhere easily.
lol.mojo
wtf is up with dealbook constantly ripping off db:
http://dealbook.blogs.nytimes.com/2008/09/14/amid-potential-chaos-a-light-hearted-break/
http://dealbreaker.com/2008/09/opening-bell-091208.php
BAC pulled out.
Here we go.
Bernarke readying the final raise in this pos poker game.
Get it worked out or PDLF pulled!!!
Fuck you or fuck you hard.
lemondropkid
@72 the fed can’t just pull the pdfl selectively. try to use your brain.
this might have smth to do with the flak paulson got for lying to dodd on fannie, in which case they pull the money for everyone so monday will be the mother of selloffs. there.
bac out– so much for the scoop.
@72 You could be right, but I just don’t see Fuld handing over the keys, pulling his CDs out of the dash and telling Bernake et al to enjoy the ride.
I also don’t know all the legal details on the funding but unlikley they can jerk it out from under LEH just because they are POed.
Remember, there are going to be shdlr lawsuits out the wazoo. LEH is not a bank or GSE, feds can’t act arbitrarily towards firm to drive out of business.
But hey, what do I know. This is all new stuff anyway – it’s like watching the Giants play the Mets in ice hockey.
@83
so you think to prevent one primary dealer from going under, they’ll pull the PDLF and put 5 more primaries in this position?
LEH has a $3 bn bonus pool liability on its balance sheet; I believe that is senior to outside debt. Wonder what happens to that?
Bank of America no longer in bidding for Lehman Brothers: report 3:48pm EDT
Unfortunately, this is what makes a market bottom.My sympathies go out to all LEH employees and their families.
BofA and Barclays out……its official
Bonus pool is an accrual. Not worth zilch to anyone.
No dealer will touch it when they think they can get teams of talent over the next 4 weeks.
Ugh.
OKAY NOW THIS WAS A SMART IDEA….
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299542422&_trksid=p3907.m32&_trkparms=tab%3DSelling
Much smarter than that other fucking ebay listing.
@89
Source?
@95, it’s at the top of the reuters site…no link cause apparently it’s developing.
@90
market bottom?
not yet i’m afraid.
“For that reason, Wall Street traders headed back to their offices this afternoon to prepare for the market impact of a pre-package bankruptcy and the unwinding of Lehman’s balance sheet of approximately $700 million.”
umm, shouldn’t that be BILLION?
Bloomberg TV confirmed BAC pulled out of bidding. LEH will probably enter bankrupcy proceedings tomorrow. LEH trades being netted to limit fallout. End of the world is here
BREAKING NEWS:
Bank of America and Merrill Lynch are in merger discussions. Full story coming shortly.
@95
Reuters
Confirm that BofA walked, multiple news sources.
That’s it. It’s over.
BAC and MER Merger!!!!
BofA and Merrill now in merger talks, per WSJ and Bloomberg! wtf?
Bank of America, Merrill Lynch In Merger Talks WSJ
Where’s the follow-up story backing this BofA walking news….reuters headline is the most that’s been posted.
blood is officially in the street
Guess Kenny Lewis is buying SOMETHING today…
Bank of America,
Merrill Lynch
In Merger Talks
http://online.wsj.com/article/SB122142278543033525.html?mod=hpp_us_whats_news
Wedding/funeral sex?
Bank of America,
Merrill Lynch
In Merger Talks
By MATTHEW KARNITSCHNIG, SUSANNE CRAIG and DENNIS K. BERMAN
September 14, 2008 4:08 p.m.
Bank of America and Merrill Lynch & Co. Inc. are in merger discussions, according to people familiar with the matter.
The talks come amid a Wall Street scramble to sort out a potential liquidation of Lehman Brothers Holdings Inc.
Bank of America had considered buying Lehman, but when those talks failed to result in a deal, BofA turned its attention to Merrill, which is considered a better fit for the bank.
so that slutbag erin callan got to get out first and now enjoying a cushy life with credit suisse while the rest of the LEH employees suffer
@112– she was fired, you dumb fuck
Anyone want to start a new investment bank?
At the rate things are going, there’s going to be a lot of room.
@84, Fed Reserve can do whatever the fuck it wants to do, where have you been the past year. Bernarke provided some serious mofo cover for Wallstreet and rest assured he is one might pissed off uncle right about now. Fuld basically spat in his face, lied to shareholders and worse has been riding on the tax payer’s tit via the PDLF while refusing to come clean much less get figgen deal done.
@86, you like others here dont get it: Fuld has NO keys, he’s holding zilch. There is no Chptr 11, its straight to 7 because their is no entity -going concern. Not to mention by failing to secure some deal/ any deal Fuld basically has abdicated his fiduciary responsibility to ‘stakeholders’= game over in Delaware courts. 7 and asset sale ala Refco.
@87, of course- this is what Bernarke will do, it the only way out for him at this point. He will bluff to throw them all under the bus if they dont get it together pronto and bail the bad bank. He will do it- wiit for the ensuing panic and then cut rates the day after a massive selloff. Then he can sit on the sidelines and wait for teh election and punt it all to Congress to figure out. Best for him is this way he can always reinstate the PDLF when the true survivors are known.
lemondropkid
@106 — Here it is: http://www.bloomberg.com/apps/news?pid=20601087&sid=aW2k6NiDhqJ0&refer=home
I’m going to enjoy buying MS at $25 tomorrow.
SPODE
BOA just walked. Tomorrow expects a meltdown.
The asset value wiped out from Citi, Meh, GS book will be amazing. Talking about fire sale, where is Ken Griffin when needed?
CALL THE IMF!!!
(or is that giving away the plot too early?)
@113
you believe whatever they tell you? fucking retarded pig. i will tear you a new arsehole every single day fucktard
I think Fuld should just show up at the office tomorrow morning around 10:30am and act like nothing happened. Then head out to the gym and long lunch with secretary around 11am and out to the club in CT after lunch.
MER and BofA must merge to survive?
Or did all that merger talk just make everyone in the room horney?
@120- ok tell us what happened? she quit?
@121– haha
Merrill employees should thank their lucky stars–Thain sees the writing on the wall.
Too long, didn’t read.
I’m headed to the LEH office for the final hours. My gut tells me Fuld doesn’t declare bankruptcy tonight if there is no deal; I’m not sure if the Fed can force him too. Tomorrow we see financials drop 500, and we’ll see what the govt does at that point
@117…you might be able to get it for less than 25 at this rate.
Callen was demoted, not fired, at LEH. She quit to go to CS…
In re: “what does Fuld have to lose?” I wonder if perhaps realizing that financially he is in a good position to play a game of chicken, the authorities would threaten him with a legal cudgel. You don’t think that somewhere in those financial statements he’s signed off on there’s a Sarbox violation??
Buy when the cannons boom, sell when the bells ring…and the big guns are going off as I speak.
Tomorrow we will see who has brass balls and who is a Nancy girl.
Jesse
You can put me down for a Nancy Girl at the moment. Long LEH at $3.75. But live to play another day.
tduncaneu
Ouch!
But there will be many,many more days to play.
Jesse
@126 what are you referring to when you say “drop 500 points”???
The SKF will be bid but the true explosion will be in the SRS.
The biggest short left out there is real estate via the REITS. They wil be sold and sold hard as this was LEH’s biggest problem that it refused to deal with, well the market will now be dealing with this CRE problem and pronto come tomorrow morning. Every single RMBS/CMBS/CRE based CDO, CDS, synthetic CDO and or RE based facility will be seeing some serious mofo haircutting tomorrow. Ouch!!!
SKF might even reverse midday, the piranha need flesh to survive not bone. RE is now the fattest pig in the water.
lemondropkid
Nancy girl needs to merge with my dark salty balls to survive.
SPODE
lemondropkid
I agree completely.
Jesse
Another cannon booms.
Jesse
American International Group plans to disclose a comprehensive restructuring by early Monday morning that is likely to include the disposal of major assets including its aircraft-leasing business and other holdings.
Merrill Lynch to sell itself to Bank of America for at least $38.25 billion: report 4:44pm EDT
SPODE
probably meant 3.825bn
where is this news coming from?
@139
Reuters.com
Breaking news at the top. Not yet a story. It’s breaking.
I’ll keep you posted about Nancy merger.
SPODE
John Thain’s grill needs to merge with a set of braces to survive.
OK, I am not one of you guys.
PDLF meaning please?
@ 142
Primary Dealer Liquidity Facility
@119
Are you referring to the International Monetary Fund or the Impossible Mission Force? It’s hard to tell which would be more appropriate at this point.
@143 thanks. B/c if you google PDLF one of the hits is Prairie Dog Liberation Front. Which might be more help in this situation. Go prairie dawgs!
@145
no prob. and if you want to google it, try PDCF because its actually the “Credit” facility not “liquidity” but PDLF seems to be what we’re using here
Also, I like to eat prairie dogs…. fur and all…
@145
You must work on Wall St. then.
@147 no i do not. the only stupid question is the question not asked.
@146 yes, that’s what was coming up…thanks. makes sense now.
@ 6… It’s hard for some of us former Lb employees not to feel somewhat vindicated…anyone who spoke out about the firm’s subprime/Alt-A risk profile over the past two-three years was systematically purged…the mortgage areas basically ran roughshod over credit/risk/treasury and any other area that got in their way. It was horrible…there were these weird Town Hall meetings talking about how each employee was an integral part of preserving the franchise, the usual b.s. about reporting up if you saw something unusual, acting as a gatekeeper for the balance sheet, and then after each and every one of them, it was back to business as usual and anyone who didn’t cooperate was shot.
And whoever above spoke to someone at Lb was “crazy busy” on Friday, that was the phrase I heard over the five years I was there, frequently from the people who did the least. There was a ‘love Lehman’ cult combined with an unwillingness to question authority that resulted in a staff consisting entirely of ‘yes’-people.
Then there were the execrable diverstiy committees…ex- and current employees, you know what I am talking about. And yet every year, it seemed about 10-12% of new MDs were women (on part with the rest of the Street, btw, but what a waste of air and time to pretend it would ever be otherwise; and the women were the worst to each other), and don’t ask about non-Asian minorities.
The people who thrived there…the less said, the better.