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Lehman KDB Story Was A Translation Problem

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It's Tuesday, which means it's time for our weekly lesson from New York Time's wonderboy and DealBook editor Andrew Ross Sorkin. (We used to called this column Andrew Ross Sorked Educates Dealbreaker, ARSED, but we got bored of that joke.)
The initial entries are on Lehman Brothers. First, he says the Fed won't let Lehman die, especially since CEO Dick Fuld is a member of the board of directors of the Federal Reserve Bank of New York. (The head of Bear Stearns was not a director.) Next up: the news that buying Neuberger Berman from Lehman will cost a lot more than the sale price, since any buyer will have to pay through the nose to keep its brokers.
For his final Lehman item, Sorkin slaps down the great bullish rumor that moved markets last week. You'll recall it began with a story in Reuters about the Korea Development Bank considering buying Lehman. By Monday afternoon the story was dead, as various people stepped forward to deny it. Quite early on we said the story seemed like a bungled translation. Sorkin agrees, and draws attention to his favorite theme: loose tips sink move markets: "Nuance can often get lost in translation, and who knows what was really supposed to be in those brackets. But the episode illustrates just how fast both good and bad information can move the markets."

Lehman's Woes Haunt the Last Days of Summer
[New York Times]


Remember When: Lehman Brothers Was In A Position To Tell Korea Development Bank To Suck It?

Those were the days. Related: Korea Development Bank Ends Talks For Stake in Lehman (September 10, 2008) Earlier: "The Bros Always Wins"