Lehman Brothers (the smallest of the bulge bracket banks after Bear's demise) may not be independent for long. The WSJ reports the investment bank may be forced by its balance sheet woes and the recent plunge of its stock to sell part of even all of itself to another financial firm. Lehman shares sold off after the WSJ reported Lehman was considering a $4 billion sale of stock. Lehman shares were down as much as 15% before the firm publicly denied it had been forced to borrow from the Federal Reserve. The WSJ reports Lehman engineered part of its relief rally by buying back its own shares - an unusual move given the worries about the firm’s financial health and the company’s recent efforts to bring down its leverage ratios. Though the buyback could be taken as a sign of management’s confidence that Lehman can weather the storm, others see it as smacking of desperation.
http://dailybriefing.blogs.fortune.cnn.com/2008/06/04/lehman-on-the-block/?section=money_topstories
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