Posted on April 9th, 2008 in Daily Stock Market / Economic News - The Real Story
I am fed up with all the bullshit and lies. Today’s Level 3 growth reported by LEH, GS and MS was just beyond belief and now more trouble. If you remember, this is how Bear began it’s fall from the peak…by closing down 3 funds and taking the ‘assets’ back on the balance sheet. Well, there goes 25% of the $4 Bil LEH raised. It won’t be long now folks. This is all coming to a head quickly. -Best, Mr Mortgage
Lehman Brothers Holdings
Inc. liquidated three investment funds after stressed markets caused
the funds’ assets to decline in value, according to a quarterly
financial filing Lehman made Wednesday with the Securities and Exchange
The New York investment bank ended up taking onto its
balance sheet $1 billion of assets as part of the three funds’
liquidation and purchased an additional $800 million of assets from
other funds, according to the filing.
In an interview, a Lehman executive said the assets
were from two money-market funds and one enhanced-cash fund, a type of
vehicle designed to give investors more yield than simple money-market
Lehman’s shares took a beating after the filing was
released. Its stock tumbled 7.2% to close at $40.54 in 4 p.m. New York
Stock Exchange composite trading. Morgan Stanley and Goldman Sachs Group Inc. saw their stock drop 2.6% and 2.7%, respectively.
Lehman, which raised $4 billion in capital to bolster
its balance sheet this month, said in the filing the three funds were
"liquidated" and the assets of those funds were bought by the bank and
put on its balance sheet.