Today In Lehman Brothers Rumors

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So here's what everyone is chattering about right now. Lehman Brothers is supposedly set to raise $5.5 billion from sovereign wealth funds. The deal is said to be split between common and preferred or hybrid shares. Lehman isn't talking right now but there's a lot of weird specificity about this, including the word that some of the money is coming from the Development Bank of Singapore.
This is definitely in wild rumor territory. No one we spoke to could trace this back to a credible source. But that isn't stopping anyone from talking about it.
Lehman is up about 4.5% today. This morning Deutsche Bank analyst Mike Mayo upgraded his rating on the stock. But the rumors and drip-drip-drip news out of Lehman has been causing a lot of chaos. Merrill Lynch's Guy Moszkowski downgraded the stock on Monday and then upgraded them on Wednesday.
And now Bernstein Research analyst Brad Hintz has lowered his earnings expectations for Lehman, warning that some of Lehman's counterparties are limiting trading with Lehman due to concerns about its capital and leverage and a recent credit rating downgrade.

Update:
For clarification sake, we'll add that Hintz's comments about trading limitations are mostly, well, limited to derivatives trading. People are stilling buying and selling stuff like stocks and corporate bonds through Lehman.

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