Do you think Lehman Brothers (LEH) will ever admit David Einhorns know more about their business than they do? Me either…….
The WSJ is reporting that Lehman will announce:
“a loss of $1.8 billion or more, instead of the modest profit they previously expected. If the dour projections come true, Lehman’s losses since the start of March would total at least $4.5 billion — or more than the firm churned out in profit during fiscal 2007.”
Now this means Lehman will be forced to:
1- Sell valuable real estate business
2- Sell Neuberger Berman
3- Dumped CDO’s for pennies in a Merrill Lynch (MER) like firesale
4- Raise more equity through additional common share or debt issuance
5- Some combination or all of the above
Most of this began coming to a head in June when Lehman began attacking David Einhorn, who had shorted the stock and had appeared on CNBC stating his thesis for doing so.
Only a day or so later, Lehman began buying back shares to reassure investors of the confidence in the stock.
A week later, Einhorn gave this interview after essentially everything he said came to fruition. It is important to note he said in June more losses were to come.
Three days later, CFO Erin Callan was done
Why, why is anyone investigating or threatening to investigate Einhorn or Ackman when nothing, nothing that has come out of a bankers mouth in the last year has been born out to be remotely accurate.
Shouldn’t they be the ones in front of investigators????
Is there anyone left at Lehman other than CEO Dick Fuld left to take the fall…finally?
Disclosure (“none” means no position):none
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