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.