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trade4size's picture

Lehman, The Next Bear Stearns?

by trade4size (Senior Gorilla, 775 Banana Points Points) on 6/12/08 at 8:31pm
Lehman, The Next Bear Stearns?

Could someone please explain the current situation at Lehman and how it related to what happened at Bear Stearns. Just how much trouble is Lehman in right now?

The fact that Callen is staying at the company just moving from her CFO back to a senior IBD role is interesting. I really would love everyones thoughts on this situation as it continues to unwind. I think the stock is down like 40% this week.

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monkeypoker's picture

Some say that hedge funds

by monkeypoker (Baboon, 141 Banana Points Points) on 6/12/08 at 9:37pm

Some say that hedge funds caused Bear's stock to plummet. Is Lehman's position that bad? Not really sure. Big-time stockholders really will dictate whether it will be next to fall by the wayside.

TheGreatOne's picture

I find this post very

by TheGreatOne (Monkey, 59 Banana Points Points) on 6/13/08 at 2:19am

I find this post very interesting. I personally knew two very senior guys who had been there for around 15 yrs and were alum of my school. Last week I found out that one left to a very large PE fund and the other started their own fund. I realize this doesn't speak volumes about what is happening but perhaps this provides some insight into the current situation.

RossGellar's picture

Read heard on the street in

by RossGellar (Baboon, 145 Banana Points Points) on 6/13/08 at 6:00pm

Read heard on the street in today's WSJ.

dosk17's picture

Call me crazy, but I just don't see it

by dosk17 Certified User(Senior Gorilla, 784 Banana Points Points) on 6/13/08 at 7:57pm

I've heard lots of rumors from HFs and friends at HFs about this, but I just don't think they're in as bad shape as Bear was... bigger and less vulnerable/vested in everything toxic right now.

The availability of the emergency Fed fund this time around might also prevent anything from happening.

I think an acquisition is unlikely unless they go into crisis mode.

Of course, I could be completely wrong. Usually runs on the bank happen very quickly and result in near-instant collapse, so no one really knows.

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