According to several Lehman Brothers employees, a rumor is going around that Barclays is back and may put in a bid for broker-dealer services and Neuberger Berman. We obviously can’t confirm and it may be wishful thinking from those at Lehman. The real question is: does Barclays have the pair to fuck with everyone like that?
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Now that it’s morning over there, maybe they are awake enough to figure out a deal.
I just checked the Times headlines, which were posted about three minutes ago. The Times says all Lehman deals are dead and Lehman is headed for bankruptcy.
I’m an institutional client of Lehman. Just got an e-mail from a senior guy there saying “Thanks, hope to be in touch with you in the future.”
Lehman is dead, man. Lehman is dead.
However, why hasn’t Lehman filed for bankruptcy yet?
Are they still holding out hope that a last minute deal might be struck?
The last Brit with balls was Maggie T.Barclay’s aren’t known to be hardasses.
Lehman employees are in a vulnerable state right now. You could probably pass anything as a rumor through the web in five minutes.
It’s sad, but no one’s coming for them.
If you work at LEH for 10-20 years, wouldn’t you have at least $10 million and nothing to worry about? Time to retire and enjoy life!
Guest wrote: “Thanks, hope to be in touch with you in the future.”
What did he mean by that?
Hey #4, care to back that up with a link?
Which Times are we talking about? I don’t see anything either way on the NYT or FT.
I would guess it’s smoke and wishful thinking, but I hope for those guys at LEH (and the rest of us) that there’s something to it. I got up just to see if the bankruptcy was announced at 11:59 EST.
@6 my guess is that it’s just admin stuff – getting their filings in order, figuring out how to proceed with the liquidation, it’ll take weeks, months to unwind stuff… but i think it’s over too
dead man walking tomorrow?
Hey #4, care to back that up with a link?
Anyone have any idea how much of their bonus a typical managing director at Lehman would receive in restricted stock? I’m hearing its a higher percentage than any other firm.
Barclays can’t do anything due to LSE rules requiring a shareholder vote. Unless you think they can put that together in the next few hours, it’s not happening.
@6 my guess is that it’s just admin stuff – getting their filings in order, figuring out how to proceed with the liquidation, it’ll take weeks, months to unwind stuff… but i think it’s over too
LEH just announced with an internal email that they are filing for chapter 11. Monday Sep 15th will be open for business as usual.
LEH soon to be ex-employee.
Is a bit strange that the filing hasn’t been disclosed yet. Midnight was deadline for ISDA swaps trades from special session today. Wouldn’t be surprised if Fuld pulls it off..
Man, they just need the automatic stay. What is taking them so long? I heard Fuld was seen running around w/ a hockey stick brandishing empty cans of Red Bull and the panties of interns.
12:22 AM Australian exchange [ASX] has suspended trading in Lehman (LEH).
I say bullshit on the Barclays deal, Lehman employees better be figuring out how to open that cupcake business they always dreamed of, or how to set up a blog on WordPress, cause this firm is finished.
So all the employees at Lehman are actually expected to SHOW UP at work tomorrow?
Man, that’s gonna be totally awkward.
@20, cut-and-paste or it didn’t happen.
>>Guest wrote: “Thanks, hope to be in touch with you in the future.”
>>What did he mean by that?
Came from his home e-mail with home contact info. Clearly a “game over” e-mail.
Yes. That what the email just instructed us. I hope they pay us in advance.
Since the filing wasnt done by midnight arent all the trades that people tried to unwind today officially off?
Why won’t Lehman die yet?
@former leh employee @20– send it to db!
The broker-dealer would have to file Ch. 7, no?
@26 it’s true. i got it too. no this is not the same person as 20.
Is true. Email out saying Ch. 11 for LBHI, says broker-dealer subs, Neuberger continue to operate. Business as usual Monday. More info then
The plan for all LEH employees to show up at work is brilliant! Fuld can turn over all the employees to Manpower and Accountemps. LEH will get paid in cash and pay their employees with stock (like usual). Brilliant!
Seriously, my thoughts are with all of the LEH employees. Regardless of what you may have thought of LEH there are a lot of good people there and I don’t think we should forget that. Best of luck to all of them.
The rumor that Barclays might come to the rescue of Lehman appears to be started by some delirious soon to be unemployed Lehman employees.
sorry guys, Barclays ain’t gonna be your white knight in shining armors. Lehman is fucked. There is no Hollywood ending for Lehman. Game over.
no email was sent. same person keeps posting
hopefully an MD would be smart enough to hedge his/her restricted stock options with options or shares of SKF. That way as value erodes on the restricted shares you clear profit with the open account that holds SKF and then as value returns to the restricted shares you have that profit as well. Granted, all this assumes your firm doesn’t lose 80% of Mkt Cap in a 5-day period, can’t sell itself over the weekend (Thain — bold move. Fuld will won’t a rematch in blood.) and must prepare for bankruptcy filing. Still a chance though and I am pulling for the LEH. Hopefully a deal gets done at $5 a share. Neuburger Berman and the Fixed Income Desks are each worth around that by themselves.
Barclay’s — step up.
Nomura — You are on holiday, but I get it because in the States’ market deals always get done over holiday weekends; step up.
Wells Fargo — You guys have always said you wanted to buy an investment bank, not is your chance; step up.
SunTrust Banks — If you actually wanted to be considered as a seriouscapital markets player buy the LEH, probably financed through more slae of KO sotck, this would add some legitimacy and prestige to your CIB division; step up.
The Mkt Cap is so low I am honestly surprised that someone, possibly even an individual, has not bought one of the oldest firms on Wall Street.
maybe under 11 employees can get severance, or at least insurance coverage for a while?
Lehmans. Turds. These are things that I enjoy seeing flushed.
Rock on, crooked boys!!!!
Actually 3 different people posted. Sadly it’s true. Have fun guys.
@35 i second that to 29.
he’ll get his in the end…assholes always do.
The internal memo says they INTEND TO FILE UNDER Chapter 11 which implies they have not done so. Chapter 11 means they intend to remain a going concern, I think, and avoid liquidation if they can. It also means they are willing to risk making the market as unruly as possible perhaps to prevent clients from jumping ship.
Feels like they will make an all hands attempt to keep client relationships and continue making the case for the value of the various pieces, at least. Risky, but what have they got to lose?
Good point guest 12:27.
The contractual terms for the netting all said they were only valid if bankruptcy were filed by midnight, according to news I read.
The parties could enter new netting contracts tomorrow, but the prices might have changed…
@33..the Holding company will file 11, B/D files 7…
Newswires hitting now
*LEHMAN BROTHERS HOLDINGS TO FILE CHAPTER 11
I recieved an email. Filing for Chapter 11, come to work tomorrow. Should be a quick day.
Leh employee here, and can confirm that the email was real.
What is everyone gonna do now?
Bess, nice to see you’re burning the midnight oil
I just want them to cut my paycheck this Friday for the current bi-weekly and let me collect my paperwork from my desk Mon AM.
@33..the Holding company will file 11, B/D files 7…
Newswires hitting now
*LEHMAN BROTHERS HOLDINGS TO FILE CHAPTER 11
*LEHMAN EXPLORING SALE OF BROKER_DEALER OPERATIONS
CH7 is brutal for an I-bank. The technology is useless without the people; the people are less useful without the technology, and the slow process of liquidation tends to minimize the chance of getting anything out of the hundreds of millions of dollars worth of tech assets.
Much better to try and auction off functioning groups.
they filed
@40 such analysis makes no sense – it doesn’t matter what neuberger or FI desk are worth on their own if they have to be netted against losses.. no matter how you slice it, x-x is still zero…
Reuters just reported Lehman officially filed for Ch. 11.
files
it is true..just came across BBG and they are seeking a sale of their B/D operations
@45 seems like the are trying harder than the “we’ll save BSC MER and AIG but Fuck LEH” FED.
FILED
CNBC announcing ch 11. 12:35 am
I wonder what happens to my Lehman retirement fund? I think it’s invested with a 3rd party. None of it is in company stock. I have a lot of friends who work(ed) there. I might show up to the pity party….
so nb could still get bought?
LEH FILED FOR CHAPTER 11 BK 11:34 NY TIME.
LEH JUST ANNOUNCED TRADING DESK TO BE SHUT MONDAY MORNING. AUS STOCK EXCHANGE HAS ALREADY SUSPENDED TRADE IN LEH HOLDINGS.
To all LEH ex-colleagues: It was fun ride! Good luck to all!
@62 do you mean 401k? it should be at fidelity. even if it was IRA at Lehman, it would be fine.
I assume pensions are protected as well.
cnbc: “none of the broker-dealer subsidaries will be included in ch 11 filings”
what does that mean? broker-dealers could still get bought then?
What was in it for LEH to file by midnight? With the unwinding trades undone, their demise will be that much more pailful and that puts pressure on Polson to back down from the “No Taxpayer Money” position.
As Asia and then Europe go to hell and US futures hit -500 or worse, don’t be surprised if the administration backs down and a taxpayer funded deal is announced between 9:00 and 9:30. The way things are shaping at 12:30AM, the political cost for Monday may be far worse than the administration is willing to pay.
This is completely surreal. Can’t believe it’s actually happening.
Best wishes to the LEH folks.
@40, Friday’s market cap was an OTM call option on a deal going through. No bank is going to touch them because nobody understands what toxic assets the bank holds.
It’s like taking rent money from somebody off Craigs List while drug dealers are after him for 20,000.
thanks dealbreaker for following this throughout the night. lehman employees are some of the smartest and nicest people on the street and wishing everyone the best.
Question: Will wall street be the same wall street of the 90′s-today after the market recovers? Are the days of models/bottles over?
Alan Schwartz is gonna survive this thing but I can’t imagine Dicky Fuld making it out of town without being chased by an angry mob with pitchforks
Market will be positive by the close tomorrow.
@73 I’m calling over. Three firms lost in six months. What’s left?
Another lesson.
Ch 11 is reorganization, not liquidation.
Not saying LEH folks will have job, but parts will be sold in an orderly (eg no gun to head) manner.
You should show up for work tomorrow. Maybe your division will be the one to be purchased.
Good luck to all LEH employees.
Its ironic with Neuberger. Although the family sold out, Old Roy Neuberger (who is 105 yrs old and has complete mental capacity) lived through every ’29 and every other crash. I’m sure he’ll have a lot to say about this one.
so the holding company filed but no subs included – what does that mean…can they come back after reorganization?
@74 mines ready. I’ve been honing it for the past week.
http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf
Question: Will wall street be the same wall street of the 90′s-today after the market recovers? Are the days of models/bottles over?
BOFA buying Merill Lynch just proves how Lehman is busted, whenever your ready to come back into the market, Goldman Sachs and Morgan Stanley will only be the survivors of this greed. Or just buy gold, might hit $1250 before the end of the year.
SEC did not put a halt to shorting of financials this weekend like with did with freddie/fannie.
Monday is going to be a MS/GS/C bloodbath
@77 at least hopefully will still get paid/insured with time to figure this shit out, hopefully.
I guess this was the best that could be salvaged at this point. Thanks DICK!
So what will happen to Lehman Point, there was a thread earlier on that. Anyone has any input?
SEC didnt halt financial sector shorting this weekend.
Tomorrow will be a MS/GS/C bloodbath
BOFA buying Merill Lynch just proves how Lehman is busted, whenever your ready to come back into the market, Goldman Sachs and Morgan Stanley will only be the survivors of this greed. Or just buy gold, might hit $1250 before the end of the year.
SEC didnt halt financial sector shorting this weekend.
Tomorrow will be a MS/GS/C bloodbath
@40 – is that you, Fuld? now that all suitors have backed off, thanks to your incompetence & obstinance, you’d like to put in a classified ad? at this point?
wake up & smell the coffee: your counsel already filed!
@82 i think that will largely depend on the regulatory response.. might be nice to see thain, now relieved of ml duty, in charge of that…
To Lehman employees, consider the Chapter 11 bankruptcy to be an act of mercy for all of you. At least you MAY have a job after all.
This goes to show that Lehman DOES care about its employees … a little bit. Lehman is doing everything they can to protect its employees even as the company implodes.
68 – Broker-dealer must file 7.
73 – No, it will never be the same. Those Ibankers who don’t lose their jobs are going to work for commercial banks, which are regulated with an iron fist. Add in leverage overhaul and destruction of securitization and the exotics and Wall Street is trashed.
@73 Wall Street guys never really got with models. They usually went for photographers/creative types. Girls at that level are kinda weird and artsy.
Hey anyone know how I can bid for one of those sick computers with 8 screens from Lehman’s energy desk? I mean lehman’s gotta sell them for like nothing right? I’m in the process of trying to build out my own setup but getting the graphics card configuration and shit right for that is a pain in the ass.
Also, GS goes to zero by December.
So what will happen to Lehman Point, there was a thread earlier on that. Anyone has any input?
If LEH were my firm I would show up tomorrow and I’d be on the phone with my clients to assure them that I would cover their work. Sure I’d be getting my personal stuff but also say goodbye to a lot of people who I wouldn’t see again; even the douchebags.
Damn it feels good to be a consultant.
You are an idiot 95
The computers with 8 screens aren’t that unique — in some cases there are actually two computers under the table.
Giant video card….
so can any one tell me how this half chap 7 half 11 thing work
@93
How about some of the european shops like CS, UBS etc?
I know it’s “selfish” to ask this question now but fuck it, I’m on pins and needles: I have a FT offer for CS after I graduate next year…chance it gets yanked?
if broker-dealers/nb still continue to operate, does that mean that they can get bought (by barclays or whoever)?
Greenspan says this is the worst economy he’s seen, which is scary considering he’s 400 years old
@82 i think that will largely depend on the regulatory response.. might be nice to see thain, now relieved of ml duty, in charge of that…
Would the LEH stock still trade in NYSE market tomorrow? I want to sell all my LEH stock.
BK at holdco only because holdco had most of the derivatives exposures
@103 Don’t believe it, the government says there is no recession and we have positive growth.
They deserve this, having lost their shirt on loans to people who couldn’t afford them, banks now fear a new round of defaults on loans to people who weren’t required to document their income.
101: There are now 80k people on the street hunting for work. Some of them are as smart as you. Some of them will work cheaply. Most are more skilled than you, and have licenses, experience, etc.
Most of your class will end up in ops or some crap like that.
@101 CS? more solid than most… hopefully that’s good enough in this market.
At least they’ve got a competent ceo at the helm
THE END IS NEAR!!!!!!!
The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government
Gold hits 11-month low today. Must be because of the market manipulators unloading gold through back channels in order to prop up the equities market. Right? RIGHT?
Question for Lehman employees –
Does Lehman own the 745 building and what is its’ approximate worth? It is relatively new …
Also, how many employees are in the NY office (and breakdown if firm-wide if you happen to know).
Just curious …
@113: why don’t you just look it up? http://en.wikipedia.org/wiki/Lehman_brothers
Will anyone buy after BoFa, Barclays, KDB have all clearly rejected Lehman?
Why would the Broker-Dealer be bought now? Wasn’t the emergency meeting over the w/e suggesting piecemeal sales?
My sincerest sympathy to all the LEH employees affected by this.
Like any firm, 90% are honest and hardworking people who end up paying the consequences for the errors of people at the top.
I hope that Fuld and his crew are denied severance and their excessive pay packages. That money could go a long way to people that might even appreciate it.
I was laid off almost a year ago and it totally sucks out there. I truly feel for you guys …
Hey 101
Sorry but yes, your offer is at risk. Why?
1) Possible general market meltdown equals hiring freezes / letting people go
Might be smart to come up with a non-bank backup plan
GL
Does the same apply for a FT offer at JPM? Received one after an internship this summer…
@74 — I hear JaCayne is offering Dicky Fuld room in his underground bunker.
I swear … this whole thing with BofA ending up with Merrill is like a groom leaving the bride at the alter and running off with her cousin …
I can’t believe you greedy fuckers still want to work in Wall Street after all the turmoil that’s going on.
I guess all you care about is prestige and money. That comes with a price. When you lose your job and offer, I won’t have any sympathy for you.
#115 They will buy because treasury will back up the deal with your and my $$$.
Word from the McCain campaign is that they are really worried that a market meltdown will loose them the election and I am speculating that they are putting pressure on the White House for a bail out. (Please note: This is pure speculation on my part)
The headline of “Dow has record down day” less than 2 months before the elections spells doom for the person running on “things are just great and I promise more of the same”
@121
I am speculating that you are an idiot
@114: thanks for the wikipedia link .. just a bit bleary at this hour.
For anybody curious, LEH does own 745 and purchased it for $700 million in 2002.
Interestingly enough, Wikipedia is already speaking of LEH in past tense AND notes the filing dated 9/15/08 … sort of quick on the response there.
http://en.wikipedia.org/wiki/Lehman_brothers
#121 – you think even though they were not willing to use your and my $$$ to back a lehman takeover deal in the first place?
That’s probably a valid speculation about Mcain though. I agree.
#121 – you think even though they were not willing to use your and my $$$ to back a lehman takeover deal in the first place?
That’s probably a valid speculation about Mcain though. I agree.
#121 and #69 responding:
Fact: At 1:50AM, things are looking ugly for Monday.
Fact: A record down day for the stock market will cause economic insecurity in the “common folk” even though they are unable to understand what it all means and how it may actually impact them (you can call me am elitist if you like)
Fact: Economic insecurity is bad for McCain.
Fact: A record down day will give Obama a boost.
Fact: The McCain campaign knows all of this.
Fact: McCain has the ability to call Bush and ask for help.
Unknown: Whether Bush is willing to help.
Speculation: The administration did not forsee how ugly things would get. They thought that the Plan B of providing additional liquidy would soothe things over.
Speculation: McCain asked Bush for help.
Wild speculation: Bush will agree to help because the cost of helping using taxpayer money is far worse than the cost of not helping.
Even wilder speculation: At least some of the suitors saw all of this coming and will not even start to negotiate till early Monday morning.
How many banks in the US and internationally will jump if they were offered a BSC style deal for LEH?
You will know somethig is going down if the actual filing is not announced by 8:00AM.
My apologies for not understanding this whole process in greater detail. I am an older person (near retirement age), and my broker informed me on Friday night that he has been sitting on over 4000 shares in LEH (common stock) since January.
I am in a panicked mode right now (can hardly breathe), and I have many questions. Help!!
1. Are my holdings in LEH now worthless?
2. Can someone with some knowledge of Chapter 11 AND Parent/Subsidiary Issues provide some guidance as to what are the possible outcomes with my shares?
3. Should I sell these shares first thing this morning during pre-market, or is it possible that these shares could regain value (or receive a payout) in the future?
4. If LEH emerges from Chptr 11, would it issue new shares or trade with the old ones?
Any other advice? If you think I’m an idiot, providing me with a link that would explain this stuff would still be appreciated, especially the whole Parent-Holding Co vs. Subsidiary thing as to the Chapter 11 filing.
Thanks in advance.
Simply put, your shares will be worthless. I’m not exagerating when I say they have more value as toilet paper or as a framed wall hanging and a reminder of what happens when extreme leverage meets a complete lack of confidence. The first thing you have to remember regarding any residual value is the debt holders are in front of you when it comes to getting paid. There won’t be anything left to provide you with any value for your shares. Sorry to be there bearer of bad news. Good luck.
You should probably consider hiring a lawyer to sue your broker.
Guys: I think barclays will buy them. The logic behind it (including why chapter 11, and fed announcement to take equities as collateral) is given in the blog financialtraders.blogspot.com
Tomorrow I plan to buy some share of LEH.
URL in comment 130 did not come out right. It is: http://financialtraders.blogspot.com/
@101…sorry but with all the layoffs last week along with more from leh…I wouldn’t hold my breath for the CS offer…plus any offers from any I-Banks over the last few months and prob for some time are not set in stone…I know ppl who lost an offer from Morgan & I lost one from GS last week…
I think if anyone can pull out a miracle, its Dick Fuld…g’luck to Lehman employees! Think of Ch 11 as a blessing for now or the best bet in the situation at hand.
I think if anyone can pull out a miracle, its Dick Fuld…g’luck to Lehman employees! Think of Ch 11 as a blessing for now or the best bet in the situation at hand.
to he’ll with all the rumor and innuendo – bess is cursing again, that’s the spirit bess!
Lehman may have filed for Ch11, but it will become a Ch7 if things don’t work out.
The market will now do their bit to make sure Lehman gets liquidated so everyone can move on.
Tell me something, why the fuck is Abby Joseph Cohen still being invited onto the WSJR Maria Bartiromo show when she has failed with her forecasts for consecutive years??!!
BofA-Countrywide-Merrill is one fucked-up combination. The image of John Thain riding on the shoulders of Ken Lewis is not exactly one of solidarity and strength. Time to short BofA.
There are many who would like to be able to blame their favorite bogeyman in DC for this financial mess, but what is indisputable is that Wall Street brought this on all by themselves. DC’s big mistake was the BSC transaction. They have NOTHING to do with toxic portfolios and the levels of leverage. That’s just greed going on about its merry way.
Good luck to everyone guys.Its a strange day today but for some of you it will be the best thing happened to you when u wake up fromchasing the lehman dream and see that u can have same salary more or less and a real life.Trust me.I ve been there and Im happy I made the right choice before I end up dead inside.For the rest of you…there r always more “lehman ” in next corner.
Its all for the best.
@138…life after banking. intriguing.
What are you doing now?
HwykE8 Im obliged for the article post.Really looking forward to read more. Great.