Employees at the Lehman Brothers in midtown Manhattan are described as "crying, angry, distraught" by a witness. They've been filing out of the building this evening.
The bank was said by a person familiar with the matter to be close to confirming that it will file under Chapter 7 of the bankruptcy code, which means the firm will be liquidated.
However Robert Peston at the BBC says it will be Chapter 11 rather than Chapter 7. "Preparations have been made for Lehman Brothers, the substantial US investment bank, to obtain protection from its creditors under US Chapter 11 insolvency procedures," he writes.
Meanwhile, talks continue at the New York Federal Reserve. With the two major buyers for Lehman Brothers, Barclays and Bank of America, having walked away from deals this afternoon, the talks now are focussed on limiting the damage from Lehman's collapse. These talks include consideration of a merger between Merrill Lynch and Bank of America, hoping to stop the "who is next" question from toppling another Wall Street firm.
Posted by guest , Sep 14, 2008 5:58PM
This really sucks, especially for the Lehman employees.
Don't worry guys, you're some of the best and brightest in the country, you'll be okay!
Posted by guest , Sep 14, 2008 6:00PM
What happened to all the hedge funds that were looking to pick this thing up in parts or in whole? They decide it'll all be cheaper if they let it collapse first?
Posted by guest , Sep 14, 2008 6:00PM
What happened to all the hedge funds that were looking to pick this thing up in parts or in whole? They decide it'll all be cheaper if they let it collapse first?
Posted by guest , Sep 14, 2008 6:01PM
4 years at an ivy league school only to work for a firm that goes under...lol
Posted by guest , Sep 14, 2008 6:01PM
smart... but over paid? not easy to replace these type of jobs.
the whole thing sucks.
Posted by guest , Sep 14, 2008 6:02PM
it's amazing how deals worth billions are done within a couple of hours
Posted by guest , Sep 14, 2008 6:03PM
End of the World.
FULL STOP.
Posted by guest , Sep 14, 2008 6:03PM
As a current LEH employee, this whole situation really does suck ... But, I will still BLEED GREEN forever.
Posted by guest , Sep 14, 2008 6:05PM
Bloody Sunday
Posted by guest , Sep 14, 2008 6:06PM
Futures markets are tanking...SP -40
Posted by guest , Sep 14, 2008 6:06PM
wish them all the best
-former lehman employee
Posted by guest , Sep 14, 2008 6:06PM
TIme to buy stock futures, down huge, nothing like a good panic so I can make a few $$$.
Posted by guest , Sep 14, 2008 6:06PM
Chapter 11?
Fuld just can't let it go can he?
Posted by guest , Sep 14, 2008 6:07PM
@4 what's so freakin funny? wait til it happens to you, bitch.
Posted by guest , Sep 14, 2008 6:08PM
after many years with Lehman Brothers and moving onto another firm, i continue to BLEED GREEN!
im praying for all current Lehman employees
- former Lehman employee
Posted by guest , Sep 14, 2008 6:08PM
Dealbook says its over
Posted by guest , Sep 14, 2008 6:09PM
@4 pity on u
Posted by guest , Sep 14, 2008 6:09PM
I am ready to offer free protein to all female Lehman employees under 30y/125lbs.
Posted by guest , Sep 14, 2008 6:11PM
fuld has lost it
Posted by guest , Sep 14, 2008 6:11PM
Can banks file Chapter 11? I thought that they could only file Chapter 7.
Posted by guest , Sep 14, 2008 6:13PM
Oh well, that's capitalism.
Posted by guest , Sep 14, 2008 6:14PM
@20 since when is lehman brothers a bank?
it's a brokerage house.
Posted by guest , Sep 14, 2008 6:14PM
@ 21 well said
Posted by guest , Sep 14, 2008 6:14PM
They can file for reorganization OR liquidation--but the liquidation route was only used mostly for failed savings and loans in the early 90s. Never an IBank.
I don't think it's fair to socialize risk and privatize reward. Let LEH liquidate.
The other banks know they can pick up the good pieces of LEH and let the bad shit on the books sit there and die with those assets being snapped up for fractions of pennies.
Why do taxpayers need to do a bailout? Goldman and the other major commercials will be fine after the other banks feast off the carcass that was once Lehman.
Posted by guest , Sep 14, 2008 6:17PM
Next stop: MER, then WAMU, then AIG.
"How do you like me now, bitches?", says Dame Capitalism.
Posted by guest , Sep 14, 2008 6:18PM
My regrets to all our friends at LEH...keep your chins up!
Posted by guest , Sep 14, 2008 6:19PM
@14 & 17,
Nicely said. 14, don't worry 4 will have to move the hot dog cart now as well, so LEH people aren't suffering alone.
Posted by guest , Sep 14, 2008 6:20PM
After years of pushing companies to cut their workforces, and leverage up its tough to feel too sorry for these guys (Banks and Brokers). Not so much fun when you're on the receiving end huh?
Hope they saved some of their bonus money...
Posted by guest , Sep 14, 2008 6:20PM
I want to know what happens to Lehman's Indexes and analytics system POINT. Both products rely heavily on their trading floor providing levels on bonds as well as yield curves and other market data. They also have a mortgage model that they use to calculate durations for the indexes and in their POINT system.
So what happens when all of the resources they need to calculate indexes evaporate? If the company goes under, can they spin off their index/analytics team as a separate organization, or would somebody like Wilshire or Barra step up and buy them? In the former case, they need to have committments from their desks to price bonds and to stand by those quotes in case clients want to execute trades, and these committments have taken years to establish. Even if they are able to build these products based on some other data providers, this takes time, and it's not like Lehman indexes can take a holiday for a week (i.e. not publish for a week). These indexes, by the way, are used in billions (maybe trillions?) of dollars of total return swaps / bond ETFs, etc.
A good business right now would be an alternate index provider who could take in Lehman's business. Perhaps like an MSCI (Morgan Stanley Capital International)? Anyone think investing in MSCI would be a good idea?
Posted by guest , Sep 14, 2008 6:21PM
Anyone think there will still be a Morgan Stanley by the end of next week?
Posted by guest , Sep 14, 2008 6:22PM
@20 - The holding company can/will file chapter 11, the broker-dealer subsidy must/will then file chapter 7.
Posted by guest , Sep 14, 2008 6:24PM
@31 thanks for the clarification on that.
@4 & 28 go fuck yourselves....some of my friends just lost their kids college funds and life's savings.
-former Lehman employee
Posted by guest , Sep 14, 2008 6:25PM
@30
yes and at a great price and dividend yield.
Posted by guest , Sep 14, 2008 6:26PM
lehman employee here: what happens if we liquidate? Will we still get any sort of severance package? Can we file a class action? what are our options?
Posted by guest , Sep 14, 2008 6:26PM
lehman employee here: what happens if we liquidate? Will we still get any sort of severance package? Can we file a class action? what are our options?
Posted by guest , Sep 14, 2008 6:26PM
No sympathy from me. The people who work at these nests of greed - um sorry I mean respected bulge bracket banks - choose to spend their lives, sometimes 12 hours a day, servicing capital, worshipping money, and ranking human beings based on the amount of their income and their net worth. Everything else in life is subordinated to the pursuit of money. When they are not on 7th Ave making money, they call it "down time." Most normal people call it "living".
Now let them live by their own perverted moral standards. They have lost their incomes. They have lost their titles. Much of their wealth has evaporated. Thus, based on their own standards, they are not worth a single tear of sympathy.
Posted by guest , Sep 14, 2008 6:28PM
@34 these are question one should have asked one's self in March.
Posted by guest , Sep 14, 2008 6:34PM
Ouch. I guess Lehman employees will have to get used to earning a real salary.
Posted by guest , Sep 14, 2008 6:36PM
Why are people sympathizing with the employees? These morons brought the firm down; my regrets are with the shareholders.
DF got what was coming to him
Posted by guest , Sep 14, 2008 6:36PM
why can't we get some moderation on the comments here?
i don't care about the stupid mayo, associate bonus, etc. type comments. I care about the idiots who aren't in finance even that constantly post things that don't make sense (see 36 or the guy from iowa).
we are the target audience, we provide the "tips", and it's beyond annoying to have to deal with idiots that should stick to commenting on the NYTimes articles instead.
i hope anyone and everyone that's affected from this weekend's insanity will be ok and do well going forward.
Posted by guest , Sep 14, 2008 6:36PM
@15 - You are "praying" for Leh employees? What god do you worship? Certainly not the one who commanded human beings not to make it a priority to store up riches in this world, but rather to be charitable and to love both their neighbors and their enemies.
Why would such a god intervene on behalf of a few thousand swaggering, formerly well-heeled New Yorkers, who made the pursuit of lucre the centerpiece of their mortal lives?
Posted by guest , Sep 14, 2008 6:36PM
"@4 & 28 go fuck yourselves....some of my friends just lost their kids college funds and life's savings. "
What? they were 100% invested in LEH stock?
I own $900 of my company's stock and even that is too much.
Posted by guest , Sep 14, 2008 6:38PM
Don't Lehman employees have to give back bonuses they received in the last 6 months under bankruptcy laws?
Posted by guest , Sep 14, 2008 6:40PM
#36- 12 hours a day? That would be UNDERWORKED if you were doing equities in dallas. 60 hour weeks are a joke.
P.S. you faggot, jealousy is a bitch. During bonus season we catch your girlfriends out on the town getting hammered on "girls night out", take them home, and come inside them.
Posted by daytraitor , Sep 14, 2008 6:40PM
To anyone with feelings of schadenfreude, you're an idiot.
This isn't good for anyone.
Posted by guest , Sep 14, 2008 6:40PM
#36- 12 hours a day? That would be UNDERWORKED if you were doing equities in dallas. 60 hour weeks are a joke.
P.S. you faggot, jealousy is a bitch. During bonus season we catch your girlfriends out on the town getting hammered on "girls night out", take them home, and come inside them.
-HEDGEmony
Posted by guest , Sep 14, 2008 6:44PM
@44 and 46 - Your duplicate posts make no sense. First, if I am a faggot, how can I have that girlfriend whom you claim to be banging? Second, how can you be banging my girl since you haven't been able to get it up since BS went under?
Posted by guest , Sep 14, 2008 6:46PM
My colleagues were some of the best people I had ever worked with, and I couldn't have asked for a better culture to work in. Good luck to each and every one of else.
- a former leh employee
Posted by guest , Sep 14, 2008 6:51PM
@36 you clearly don't know what you are talking about. your view is very narrow. there were/are plenty of "regular joes and josephines" working on the street, people living modestly in the boroughs of NYC, who had decent salaries and good benefits. Not everyone was getting paid millions, you idiot, but these people were making a decent living with good benefits and in turn supporting local businesses, sending their kids to the schools, part of the city and its surrounding areas MIDDLE CLASS life.
Happy they're fucked too?
Posted by guest , Sep 14, 2008 6:51PM
this can't be happening. i'm so angry right now i can't think straight. how can lehman's officers and so-called brains of the company devastate so many thousands of employees. because in reality they are to blame. the government CAN do something to help. they've done it before!! help this company out!!! help the employees out!!!! they don't deserve this!! many have been loyal employees for years and basically gave their life for this company!!
Posted by guest , Sep 14, 2008 6:52PM
this can't be happening. i'm so angry right now i can't think straight. how can lehman's officers and so-called brains of the company devastate so many thousands of employees. because in reality they are to blame. the government CAN do something to help. they've done it before!! help this company out!!! help the employees out!!!! they don't deserve this!! many have been loyal employees for years and basically gave their life for this company!!
lehman employee in limbo
Posted by guest , Sep 14, 2008 6:54PM
this can't be happening. i'm so angry right now i can't think straight. how can lehman's officers and so-called brains of the company devastate so many thousands of employees. because in reality they are to blame. the government CAN do something to help. they've done it before!! help this company out!!! help the employees out!!!! they don't deserve this!! many have been loyal employees for years and basically gave their life for this company!!
lehman employee in limbo
Posted by guest , Sep 14, 2008 6:57PM
@49 - No, I was not referring to support staff and I am sorry for them. Of course, they are not the ones making self-pitying posts here.
Anyone in the chain beginning with the analysts and going up to the VPs, MDs and of course, Mr. Fuld are not, IMHO, candidates for sympathy. They lived by a certain value system which elevated and celebrated the supposedly productive class of professionals on Wall St. and disparaged the proles on "Main Street". Now they will live on Main Street too.
Posted by guest , Sep 14, 2008 6:57PM
She's your girlfriend because you help her find pumps to match with her dresses. And I get it up all day long because in buyside the only thing we know how to do is pump and dump. Your girl, my whore.
-HEDGEmony
Posted by guest , Sep 14, 2008 7:01PM
@53 actually I am the spouse of a VP who worked his way up from clerk-dom, so I can speak to you from both sides.
But Fuld man, if I could smack him, I'd smack him so hard his eyebrows would fly off.
Posted by guest , Sep 14, 2008 7:01PM
54- go buy yourself a porno. you certainly need it.
Posted by guest , Sep 14, 2008 7:04PM
HEDGEmony -
Funny post. You deserve my girl. She's all yours. FYI: she's a lot like a CDO. Looks good at first, but later you find out she's got herpes.
Posted by guest , Sep 14, 2008 7:10PM
8=======D~~~~
Posted by guest , Sep 14, 2008 7:11PM
@55,
Hopefully your spouse gets it together soon, I'm sure they will; no matter what, it takes talent to get to VP and that talent is transferable. As for the slap, it would be nice to see. Hubris, the audacity to push back at KDB...
@41, how's the weather in Utah? You freak, ever thought about the Chevy truck you drive and the supply chain that brought it to your shed? Moron.
Posted by guest , Sep 14, 2008 7:20PM
@59 thank you for your support...but i wonder, talent transferable to where these days? Not too many places left, sadly.
I knew this day would come in the shrinking Street, I just didn't think it would come so fast and so ugly. I thought merger one day...not this, this hideous end. It's unimaginable.
Damn you DF, damn you!
Posted by beentheredonethat , Sep 14, 2008 7:28PM
Whatever went on between Dick Fuld and his shareholders and his employees is a private matter. You're not getting my money to bail yourselves out.
Posted by guest , Sep 14, 2008 7:38PM
@61 so you think the shareholders and the employees had a say in this? BDDT, I thought you knew better.
Posted by Seaman Bodine , Sep 14, 2008 7:39PM
I still don't understand with DESCO didn't pick up NB, using LEH equity (only half joking there)
Posted by guest , Sep 14, 2008 7:43PM
@61 you fudge packing little faggot. I will take your fucking money whenever the fuck I want to just like I probably did in high school before I shoved you into a locker. Get off this board before I strongarm some nerd from IT to look up your IP address so I can hunt you down like an animal and skin you alive.
Posted by guest , Sep 14, 2008 7:46PM
@64"Get off this board before I strongarm some nerd from IT to look up your IP address so I can hunt you down like an animal and skin you alive."
haha. you know the db IT people? you must be big and important. not that they'd give you anyone's info, RoidRage.
Posted by guest , Sep 14, 2008 7:48PM
@62 Yeah no doubt eh? All 694.40 million shares were involved, that's why all the business of late.
@61 Private matter, public firm?
Posted by guest , Sep 14, 2008 7:55PM
@64,
Please. Everyone knows that the loudest and rudest of the anonymous writers are most likely to be the weakest, thinnest and most needle-dicked. Betcha 10 Euros that you have never hunted anything other than attention.
Posted by guest , Sep 14, 2008 7:56PM
#42: Many employees held Restricted Stock Units (RSUs) that were part of their bonus. They weren't allowed to sell the stock right away (it vests a few years after they are granted). That's why many (if not all) employees owned stock in the company.
It totally sucks for the 99% of the people who worked there -- especially since they didn't cause the mess. Think of the clerks, administrators, computer programmers, who weren't in finance roles who got screwed because of the stupid, lazy, selfish, greedy idiots on top.
I feel sorry for many of the people there. It also sucks for the job market in NYC. Less demand and more supply means wages will go probably go down.
Sometimes you see the average salary at these banks being a few hundred thousand dollars. You have to remember that the people on top make tens of millions and throw off the average. The median salary is less than the mean, and most of the people working in the firm were middle class, upper middle class folks (atleast NY/NJ middle class).
F Fuld!
Posted by guest , Sep 14, 2008 7:58PM
hahaha...@ 64 amazing post bro! Keep up the good work.
Posted by guest , Sep 14, 2008 7:58PM
hahaha...@ 64 amazing post bro! Keep up the good work.
Posted by guest , Sep 14, 2008 8:09PM
@68,
I agree. I'm not from NYC but the dilutive effect on salaries must be very real; it seems to have percussive effects on less-experienced finance types who are now being out-competed for lower paying boutique jobs by ex-bigleaguers...
Posted by Finnegan , Sep 14, 2008 8:13PM
This is bad for everyone, for America. It means more business will move elsewhere and NY gets devestated.
Meanwhile McCain is at a Nascar race and Palin repeats her idiotic stump speech at every stop, ("I told Congress, thanks, but no thanks...) babbling while Rome burns.
Hopefully everyone lands on their feet, and hopefully we get some new firms that rise from the dust. I guess the existing PE firms move up a notch.
Posted by guest , Sep 14, 2008 8:14PM
this needs to be updated--
http://en.wikipedia.org/wiki/Richard_S._Fuld,_Jr.
Posted by guest , Sep 14, 2008 8:19PM
@68 well said. Good luck to all the small businesses in the tri-state area. Ripple effect. Think people are going to eat out as much, get their nails done & hair did, buy fancy suits, hire cleaning and lawn people...
all the shit falls backwards and downwards.
and good luck to home sellers around here too.
Posted by guest , Sep 14, 2008 8:49PM
Goodnight, funnyman. You will be missed.
Posted by guest , Sep 14, 2008 9:06PM
What about Wachovia? Not hearing much on that end -- even with the deposit base, gotta think they're teetering . . . .
Posted by guest , Sep 14, 2008 9:07PM
and what the hell, AIG turns to the FED? Did I hear that right?
Posted by guest , Sep 14, 2008 9:14PM
Is it me, or is Bank of America taking over the world?
Posted by guest , Sep 14, 2008 10:57PM
Both groups of people are f**ked in some ways. The normal rank-and-file employees may not have been given much LEH stock but they will also have a very hard time finding a job right now. There have been tons of rank-and-file employees (e.g. analysts, associates, administrative, support, IT) laid off from all the banks. The more senior level employees got a large chunk of their bonuses in stock which are now worthless. Will they find jobs? The stars will, they will get gobbled up, but most will have a hard time finding something in this market. I work for a large multi-strat fund and we've been getting inquiries from a lot of guys coming out of the i-banks and we have hired one and that is probably all we'll hire. What we're seeing right now is a supply correction in the Wall Street job market. There are simply too many people for what has become a much smaller and much less active market. Good time for the younger people to go back to school and for the more experienced people to explore a different career....at least you know it will be less stressful.
Posted by guest , Sep 14, 2008 11:13PM
@79 any suggestions for a new career? When you've been doing something for so long, it's hard to get out of that track...
Posted by guest , Sep 14, 2008 11:23PM
Can't say I feel too bad for the i-bankers and traders. These people made more money in the last 3 years than some people do in their lifetime.
Hope they put some money away for the rainy days. US finance sector will shrink big - and seriously the only people hurt would be those out of work bankers and traders. General public doesn't care if some i-banks go out of business.
Posted by guest , Sep 14, 2008 11:25PM
"and seriously the only people hurt would be those out of work bankers and traders."
see @81, that's where you are wrong. These people spend money, on everything from the coffee cart guy to the car services to the restaurants, trips, house cleaners, tailors, tutors, etc.
So you might THINK they are the only ones this is going to hurt, but think again. It's all ripples...
Posted by guest , Sep 15, 2008 2:30AM
Why are some of you bothering to post on here if you feel hatred for the people at Lehman and other financial firms?
Anyway, I've only worked for Lehman for a few months (didn't get any of those bonuses), but I am damn proud to have worked there. My thoughts and prayers are with my co-workers with families that depend upon them for support.
Posted by guest , Sep 15, 2008 2:47AM
I completely agree with the last comment...do you ignorant haters understand people are losing their jobs who have families to support.
I just lost my job at lehman two wks ago & worked there for a yr. Management at Lehman was great & helped me get another job at Goldman. And, I worked there while attending law school as I need to spend money to pay for my education, let alone a cup of coffee from the coffee cart & am proud and fortunate to have worked with such great people.
Posted by guest , Sep 15, 2008 3:21AM
(@84 cont) My heart goes out to my fellow colleagues at Lehman-bleed green forever!
While, I am glad that the Fed didn't use taxpayers money to bail out Lehman as a matter of principle, I just think its horrible how much greed can affect innocent workers lives.
Perhaps, its the nature of the business. I hopes that people in the banking industry will learn from all this...
lehman'er (from 84)
Posted by guest , Sep 15, 2008 7:42AM
Ok, from now on you have to realize that if you go to a firm like Lehman, you work really hard and do long hours and hope that your bonus justifies it. You're not doing god's work there, you're trying to make really good money. The possible downside of this is that it's risky. I'm a Lehman employee, and I'm pretty bummed, but this whole thing about how surprised everyone is that the risk was real has to stop.
Posted by guest , Sep 15, 2008 10:52AM
I know a former Lehman employee who had been with firm 30, yes, 30 years.
He retired within the last year. Many benefits have been wiped out and many more may follow. He has spent the last few days on the phone with his Lehman friends trying to console them. He has also been "in the solution" attempting to make the best of this terrible situation. He is but one example of the caliber of Lehman employees. The average Lehman rank and file are by no means average. They deserve to be proud of their work at Lehman.
It's a sad, sad day for Lehman.
Pitiful to read the "nasty" comments posted.
Fuld walks away with at least 100 million. I think he might be able to "squeak by". Maybe he will give some back to his dedicated, hardworking employees .....NOT!
Posted by guest , Sep 15, 2008 2:59PM
DICK and his loyal cohorts should be forced to pay back the employees they ROBBED BLIND; there should be stricter regulations enforced so this can be avoided in the future and every human being should brace themselves as the worst is yet to come!
Former LEH employee
Posted by guest , Sep 15, 2008 9:05PM
my used-to-be-$20K worth of vested LEH's are now gone. i've spent 7 years there until got laid off some months back. still it's very hard to find a job. Fk Dck Fld! what about my wife & kids...
Posted by guest , Sep 16, 2008 10:02AM
Barclay's will keep some of LEH employees, but it's going to be tough. I don't care how much money some made, losing a job is devastating. Good luck to all.
Posted by guest , Sep 16, 2008 10:10AM
Dick Fuld
HOw does he sleep?? Knowing that he has ruined thousands lives?? If he had a bit of shame, he should use his package to help others. That's not happening because he is a PIG!!
Posted by guest , Sep 16, 2008 1:44PM
Assholes!! No Sympathy for Lehman. When they were doing well their bankers acted like they owned the town. Ediots trying to make money !!
Posted by guest , Sep 16, 2008 1:46PM
Assholes!! No Sympathy for Lehman. When they were doing well their bankers acted like they owned the town. Ediots trying to make money !!
Posted by guest , Sep 16, 2008 9:53PM
@93, you are right my man! No sympathy for Lehman. All Lehman employees deserve this! How does it feel to get fucked? Your flashy building made u think u owned the Street? hehehe. Go fuck yourselves now! Dick headed Fuulds!!
Posted by guest , Sep 29, 2008 6:44PM
Canada Man Says Ha Ha Ha
I sold all but 20 percent of LEH stock, and any money market mutuals 1 year ago, bought a Million dollar resort property from the profits, in Costa Rica. Sorry hate to rub it in,
+all good things come to an end.
Count your chips and move on LEH employees.
+What kind of idiot agrees and works for a company and can not sell there stock for 5 years, Thats crazy.
Only an oppinion
I love Dick F, hes a saint to me.....