Lehman Brothers Continue Desperate Bailout – Too Little Too Late?
What’s going to be left to sell, if this doesn’t work? Anybody in the market for Fuld’s used desk chair and a few paperclips? Does anybody think Lehman is going to be able to pull themselves out of this mess? 3rd quarter reports a net loss of $3.9 billion, and they just announced they’ll be slashing dividends by nearly 93%. Time to jump ship? (Well, what’s left of it) I’m curious to hear what you think.
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My question is how they
My question is how they intend to make money going forward?
umm look at today's press
umm look at today's press release
every division is making money except fixed income.. and all the FICC losses are coming from real estate
i think the spinoff is a good idea, and a gain of cash from a asset sale will help
my guess is the firm survives
Aren't they going to need a
Aren't they going to need a lot of equity to successfully pull off the spin-off though? Where's that going to come from?
my opinion is that the
my opinion is that the equity will come from 1. some of their sale of assets such as sale of assets to blackrock or 2. equity generated from sale of a part of investment management arm or 3. maybe a few outside investors
they should be able to pull it off
I still have my doubts that
I still have my doubts that they will be able to stay Tier I though, even after all the sales of assets. It also seems like they may be having a more difficult time unloading their IM divisions than they expected, but maybe I'm reading into that too much.
what is the point of the subject line in replies?
Aren't they going to need a lot of equity to successfully pull off the spin-off though? Where's that going to come from?
They are putting $8bn equity into the spin-off, Real Estate Investments Global, and the rest will be financed by long term debt ($24bn debt).
thaler at uchicago did a
thaler at uchicago did a pretty good case study on dividend cuts - dividends are the canary in the coal mine, adios...
The
only good thing in this thread is affluenza's avatar
My question is if you are an
My question is if you are an MD at Lehman and a vast majority of your pay is in now worthless stock options, why not jump ship? I know it is a tight market but if you are an MD with a lot of relationships that get you the lead on deals, you can find a job.
still hard to find a job i
still hard to find a job i even with those relationships
senior people are probably the most cut at alot of the investment banks so they might not be hiring
All the good ones have been
All the good ones have been leaving anyway - there have been a couple of articles recently about the brain drain at Lehman. The ones who are left are probably mediocre and no bank needs more mediocre MDs at the point. Even if Lehman survives, I don't know how it will remain competitive with such a talent outflow.
Lehman employees are
Lehman employees are historically very loyal.
Lehman will survive...just a lot smaller. And over many years it will build up again.
put a hold on everything -
put a hold on everything - it's asking for buyers. lehman may survive after all.