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Traden4Alpha
Posts: 23951
Joined: September 20th, 2002, 8:30 pm

Lehman

September 11th, 2008, 12:12 pm

QuoteOriginally posted by: NicolasQuantWhy don't they consider floating the thing instead of being potentially ripped off by other financial institutions if they sell only a large chunk to a single investor?I suspect that counterarguments to a float are "time" and "trust" -- LEH doesn't have enough of either to ensure a rapid injection of sufficient capital.
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Lehman

September 11th, 2008, 12:39 pm

Nevermind.
Last edited by TraderJoe on September 10th, 2008, 10:00 pm, edited 1 time in total.
 
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hedgefinan
Posts: 50
Joined: September 19th, 2006, 9:23 pm

Lehman

September 11th, 2008, 1:19 pm

We see that every month, negative news come in light about banks that their main activities are close related with alternative investments and hedge funds. We turn to passive management again?
 
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NicolasQuant
Posts: 88
Joined: August 28th, 2008, 3:59 pm

Lehman

September 11th, 2008, 1:40 pm

QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: NicolasQuantWhy don't they consider floating the thing instead of being potentially ripped off by other financial institutions if they sell only a large chunk to a single investor?I suspect that counterarguments to a float are "time" and "trust" -- LEH doesn't have enough of either to ensure a rapid injection of sufficient capital.Totally agree but they just said yesterday they have 42bn of cash-equivalents.Is that likely to be trusted by the market?Is that enough if all the street begins putting pressure on them?Is the management so incompetent not to having anticipated the massive LEH sell-off would imply getting a very very low bid, if any bid before bankruptcy, for Neuberger and other assets they own and still look valuable...
 
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Traden4Alpha
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Joined: September 20th, 2002, 8:30 pm

Lehman

September 11th, 2008, 2:19 pm

QuoteOriginally posted by: NicolasQuantQuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: NicolasQuantWhy don't they consider floating the thing instead of being potentially ripped off by other financial institutions if they sell only a large chunk to a single investor?I suspect that counterarguments to a float are "time" and "trust" -- LEH doesn't have enough of either to ensure a rapid injection of sufficient capital.Totally agree but they just said yesterday they have 42bn of cash-equivalents.Is that likely to be trusted by the market?Is that enough if all the street begins putting pressure on them?Is the management so incompetent not to having anticipated the massive LEH sell-off would imply getting a very very low bid, if any bid before bankruptcy, for Neuberger and other assets they own and still look valuable...Although LEH does not face a short-term cash crunch, they do face the problem of approaching a point of negative equity. That $42 bn in cash won't go far when the $600 bn in creditors line up for payment. That negative equity point will be reached sooner, rather than later, if LEH's assets continue to deteriorate or if LEH can't hold costs below revenues. The trust factor comes in realizing that LEH may already be well past the negative equity point if it's assets are worth less than what LEH thinks they are.I'd say that Wall Street psychology and optimism, rather than incompetence, guided LEH management actions. If you keep thinking that the market has touched bottom, you're not going to pull the trigger on drastic actions (e.g. selling the crown jewels). The fact that the market will punish any show weakness means that everyone in an IB must show extreme confidence even if that confidence is erroneous.
 
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Siberian
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Joined: June 25th, 2003, 8:56 pm

Lehman

September 11th, 2008, 2:44 pm

did anyone see handsome Mr. Ackman on CNBC? He had a put on lehman as an overall hedge, not a view, but was still able to make some good money he also talks about FRE FNM:First Segment: http://www.cnbc.com/id/15840232?video=8 ... ay=1Second Segment: http://www.cnbc.com/id/15840232?video=8 ... lay=1Third Segment: http://www.cnbc.com/id/15840232?video=8 ... ay=1Fourth Segment: http://www.cnbc.com/id/15840232?video=8 ... lay=1Fifth Segment: http://www.cnbc.com/id/15840232?video=850722382&play=1
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Lehman

September 11th, 2008, 2:52 pm

QuoteOriginally posted by: Traden4Alpha The fact that the market will punish any show weakness means that everyone in an IB must show extreme confidence even if that confidence is erroneous.This is deception and is what Enron did. Au revoir.
 
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Siberian
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Joined: June 25th, 2003, 8:56 pm

Lehman

September 11th, 2008, 2:58 pm

 
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NicolasQuant
Posts: 88
Joined: August 28th, 2008, 3:59 pm

Lehman

September 11th, 2008, 3:07 pm

2007Lehman Brothers ranks #1 "Most Admired Securities Firm" by Fortune.Achieves record net revenues, net income and earnings per common share (diluted) for the fourth consecutive year based on record results in all three business segments.Acts as financial advisor on largest-ever M&A transaction in financial institutions sector: $98 billion acquisition of ABN AMRO by a consortium of the Royal Bank of Scotland, Santander and Fortis.*#1 dealer on the London Stock Exchange by annual trading volume for the third year in a row.Creates the Lehman Brothers Center for Global Finance and Economic Development at Spelman College, the #1 ranked institution among historically black colleges and universities by U.S. News & World Report.Establishes the Council on Climate Change to bring together leaders from industry, policy and academia to facilitate constructive dialogue regarding climate change policy formulation and its impact on business.
 
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Siberian
Topic Author
Posts: 298
Joined: June 25th, 2003, 8:56 pm

Lehman

September 11th, 2008, 8:47 pm

U.S. Government to Arrange Sale of Lehman Brothers By David Cho and Heather LandyWashington Post Staff WritersThursday, September 11, 2008; 5:16 PM The Treasury Department and the Federal Reserve are engineering a sale of Lehman Brothers through a consortium of private firms. The details are not finalized, but sources familiar with the matter say the purchase is expected to be completed and announced this weekend before Asian markets open on Monday morning.Au revoir...
 
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trackstar
Posts: 27401
Joined: August 28th, 2008, 1:53 pm

Lehman

September 11th, 2008, 10:58 pm

After a bit more blood letting, maybe it will be BoA.http://online.wsj.com/article/SB1221162 ... lenews_wsj
 
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rmax
Posts: 6080
Joined: December 8th, 2005, 9:31 am

Lehman

September 12th, 2008, 3:11 pm

Why the f*ck didn't the SEC suspending trading on this stock? The stock price is meaningless.
 
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Traden4Alpha
Posts: 23951
Joined: September 20th, 2002, 8:30 pm

Lehman

September 12th, 2008, 3:26 pm

QuoteOriginally posted by: rmaxWhy the f*ck didn't the SEC suspending trading on this stock? The stock price is meaningless.Would you buy a company that the SEC had suspended trading on? I know I wouldn't. Price on LEH may not mean much, but it does mean something in terms of some sort of market consensus on net worth of the firm.
 
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trackstar
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Joined: August 28th, 2008, 1:53 pm

Lehman

September 12th, 2008, 5:29 pm

This is evidence that the government has not turned socialist in the U.S. just yet. (Contrary to some opinions: see thread on Fannie and Freddie bail out in the General Forum.)FNM and FRE have not been suspended either.If BoA does lead on this, will shareholders have same effect as they did in the spring on Bear/Morgan?
 
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Siberian
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Posts: 298
Joined: June 25th, 2003, 8:56 pm

Lehman

September 12th, 2008, 5:32 pm

QuoteOriginally posted by: mackbarThis is evidence that the government has not turned socialist in the U.S. just yet. (Contrary to some opinions: see thread on Fannie and Freddie bail out in the General Forum.)FNM and FRE have not been suspended either.If BoA does lead on this, will shareholders have same effect as they did in the spring on Bear/Morgan?you mean first 50 cents per share offer and then final at 3$ per share? perhaps
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