The Lehman Rumor Mill: Spinning Out Of Control

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While Bess is hot on the trail of muscle-bound men, we're continuing to watch the rumor mill spin and spin while it grinds down Lehman Brothers. One comical effect of the rumor mongering today was the emergence of two contradictory rumors about Goldman Sachs and Lehman Brothers.
On the one hand, there was the rumor that Goldman had stopped taking counter-party risk with Lehman or perhaps had warned clients to avoid trades with Lehman. CNBC's Maria Bartiromo just reported that Goldman has gone on the record to deny the 'stop trading' rumor, saying it is a "willing counter-party" to Lehman.
On the other hand, someone at Seeking Alpha is circulating the story that Goldman Sachs submitted an $11.50 bid for Lehman.
So which is it? We're inclined to believe neither rumor. A trader friend who hates Goldman, however, disagrees. He thinks Goldman circulated the first rumor to beat down the stock, making it's offer more attractive. It's entertaining how the people who hate Goldman the most also believe they can accomplish the most nefarious schemes.

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