Lehman Brothers (LEH)

Re: Lehman LEH

Postby blid2def » Mon Sep 15, 2008 10:22 pm

Bloomberg's header very powderful:

Lehman Files for Record Bankruptcy, Victim of Meltdown Firm Helped Create

In an interview which I posted a link to previously, LKY was asked about the financial / credit markets turmoil:

Q: Switching to the future of capitalism the subprime mortgage predatory fiasco gave the entire world the vision of another great depression. Major banks in the U.S. and Europe lost close to $300 billion to this gigantic fraud.

A: From time to time, smart crooks get the better of people. They skewer the system...


I wonder who were some of those smart crooks he had in mind.
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Re: Lehman LEH

Postby kennynah » Mon Sep 15, 2008 10:23 pm

the smartest are those who shorted LEH all the way...i take my hat off for these people... they are either very gutsy or very informed or both...

ps : i was very wrong to believe that leh could be rescued...

grandrake wrote:In an interview which I posted a link to previously, LKY was asked about the financial / credit markets turmoil:

Q: Switching to the future of capitalism the subprime mortgage predatory fiasco gave the entire world the vision of another great depression. Major banks in the U.S. and Europe lost close to $300 billion to this gigantic fraud.

A: From time to time, smart crooks get the better of people. They skewer the system...


I wonder who were some of those smart crooks he had in mind.

pps : obviously, it wont be himself...if he was, the term "crooks" would be known as "the smart ones"
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Re: Lehman LEH

Postby winston » Tue Sep 16, 2008 9:41 am

Chapter 11 does not mean the end of the world for Lehman.

It means that they can now focus on trying to clean things up without worrying too much about their creditors spraying red paint on their offices everyday.... Ah Lung movies lah..

However, they may have to take some bitter medicine ie. cutting jobs, getting out of non-performing businesses etc.

Some of the US Airlines were also in Chap 11. They got rehabilated and then came out of Chap 11.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Lehman LEH

Postby -dol- » Tue Sep 16, 2008 9:54 am

winston wrote:Some of the US Airlines were also in Chap 11. They got rehabilated and then came out of Chap 11.


... and then they went back into Chap 11 again...
It's not the bottom if you are not crying.

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Re: Lehman LEH

Postby winston » Tue Sep 16, 2008 10:00 am

Yes, but that is the next movie lah..
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Lehman LEH

Postby Cherry » Tue Sep 16, 2008 10:28 am

winston wrote:
Some of the US Airlines were also in Chap 11. They got rehabilated and then came out of Chap 11.


dol wrote:
... and then they went back into Chap 11 again...


HaHaHa :lol: More hilarious than reading a joke!
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Re: Lehman LEH

Postby millionairemind » Tue Sep 16, 2008 3:02 pm

Damn cham... watching CNBC last night at 6pm... so many lehman's employees taking a carton into the office building in NYC.. :(

Reminds me of Enron back in early 2000s..

So many ppe. lost their pension.... never put all your pension into a single stock.. :(

London staff told to leave as Lehman Brothers goes under
By Louise Armitstead
Last Updated: 6:57am BST 16/09/2008

By 9am yesterday morning a trickle of figures carrying small cardboard boxes of belongings emerged from the Lehman Brothers London headquarters and headed for Canary Wharf station.

Within a few hours, their numbers had swollen into a steady stream. Inside the bank, there was no official explanation but, as PriceWaterhouseCoopers officers moved in and email and telephone systems were shut down, it was clear to many of the bank's 4,000-strong workforce that there was nothing for them to do but clear their desks and go home.

In neighbouring towers, workers from other banks watched the situation with horror.

Few had had a chance to fully grasp the upheaval of the weekend and yet here was evidence of the human cost of one of the most tumultuous 48 hours in global finance that anybody could remember.
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Re: Lehman LEH

Postby kennynah » Tue Sep 16, 2008 3:05 pm

lena : the otoise housewife oracle from chua chu kang....."bye bye brothers" came true to the "T"

i will request GR write a special script...when u log on, my mobile will "beep" and when u post, my mobile will "read" me your writing... hahahaha...

sui lah.... u r good !
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Re: Lehman LEH

Postby millionairemind » Tue Sep 16, 2008 3:22 pm

Lehman in talks to sell part of firm to Barclays: reportSeptember 16, 2008 1:46 AM ET

NEW YORK (Reuters) - Lehman Brothers is in talks to sell parts of the company to Barclays Plc, with the potential for an agreement to be reached as early as Tuesday, the Wall Street Journal reported on its website.

The report late on Monday came after Barclays confirmed it had considered a bid for all of Lehman, whose holding company filed for Chapter 11 bankruptcy protection on Monday after failing to find a buyer over the weekend.

A source told Reuters on Monday the British bank had pulled out of the bidding for the entire firm because a deal would have required it to guarantee Lehman's trading obligations.

Lehman became the largest U.S. bankruptcy and the highest-profile casualty of the global credit crisis.

Citing unidentified people briefed on the discussions, the WSJ said Lehman executives were at the company's New York headquarters trying to create a plan that would preserve many jobs and operations of Lehman.

A Lehman representative declined comment on the latest report and a U.S. representative for Barclays was not immediately available for comment.

The latest deal under discussion would fold Lehman's core business -- underwriting stocks and bonds, providing merger advice, and securities trading -- into Barclays, UK's third-largest bank, according to the Journal.

But the deal was not certain and questions remained such as the price Barclays might pay and what would happen to Lehman's toxic mortgage-security and real estate assets, according to the story.

Barclays was not expected to take on Lehman's foreign operations, which have been growing in recent years in both Europe and Asia, according to the Journal.

Lehman is expected to sell most of its businesses, including its broker-dealer operations and its Neuberger Berman asset management unit.

Those units did not file for bankruptcy protection and are operating, but customers are often jittery about trading with a company whose parent is bankrupt, so selling the units before too many customers leave would be crucial.

Lehman is the biggest investment bank to collapse since 1990, when Drexel Burnham Lambert filed for bankruptcy as the junk bond market cratered.

Lehman listed $639 billion of assets as of the end of May in its bankruptcy filing, putting it well ahead of long-distance phone company WorldCom Inc, which listed $107 billion of assets when it filed for bankruptcy in 2002.

The bankruptcy filing came after a weekend of heated negotiations among regulators and Wall Street firms about Lehman's fate.

The U.S. government refused to backstop Lehman's worst assets in the way it backstopped Bear Stearns Cos' sale to JPMorgan Chase & Co Government officials told banks to support Lehman or else be prepared for more investment banks to lose investor confidence and fail.


But prospective bidders refused to buy Lehman without government support, people briefed on the matter said. In the end, Lehman was allowed to fail, and Bank of America agreed to buy Merrill Lynch, which was seen as the next weakest U.S. investment bank.

(For more stories on the collapse of Lehman and its plans to sell assets, click on

Copyright 2008 Reuters
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Re: Lehman LEH

Postby kennynah » Tue Sep 16, 2008 3:24 pm

and the saga turns and twists... more drama than bollywood shows... :lol:
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