3pm EST – DB To Buy LEH For $15??

Posted on June 12th, 2008 in Daily Stock Market / Economic News - The Real Story

That’s the rumor that landed in my email from a credible source.  But, again this is only speculation at this point. -Best Mr Mortgage

18 Responses to “3pm EST – DB To Buy LEH For $15??”

  1. Given LEH was just trying to raise $6 billion at a ‘discounted’ $28.00 a few days prior, this almost 50% drop in price will scare the crap out of the street. Wow.

  2. Is it serious, WTF???!!!@## What I heared was Blackstone to buy.

  3. Just saw this post after I left a comment on the other. This is interesting. Lehman buyout rumors have been spreading heavier today. Most people really seemed focused on how wrong it was to dump Gregory and even more so, Callan from their positions. I looked at it as, “Who needs them if Lehman is being bought by a company with their own people?” Hmmm….. interesting timing to say the least.

    What gets me is all the media females accusing Lehman for dumping Callan because she’s a female. Before I tick off a lot of females, I’ll be first in line to say there are some FANTASTIC female CEOs!!!! I’m sure Callan has some great talent and yes, she was tossed in there a few months ago. Yes, Callan has to rely on the data being handed to her as being accurate – since she hasn’t been at Lehman that long to straighten the mess out. This is where they’ve got her. Not because she was a female.

    Sure you can make the claim she had to rely on others to provide accurate data. It’s also her job to ensure it’s correct and reprimand those who provided incorrect data to her. PERIOD. Did this happen or did she roll with the lies? Who knows? Hopefully the people under her will roll out of Lehman too, as they deserve to be booted.

    Callan delivered that earnings call (mysteriously delayed after the Bear Stearns meltdown) and disclosed the data. Since the data WAS AUDITED/APPROVED PRIOR to the call….. approved as in READY TO PRINT IN A 10K and file, why didn’t Callan do something when SHE KNEW the data was BS when the 10k was filed with different numbers?

    So, chuck out the arguments for keeping her. She messed up, people under her messed up, people in other departments messed up. It was multiple people that created Lehman’s situation – NOT a lone gunman as every meltdown looks to point the finger at that “one” individual.

    The financial companies (Banks, iBanks, Hedge Funds, Mortgage Lenders, etc) are such a mess. Who knows what’s really on the books? They don’t seem to know which is real scary. How can they say the worst is over (again) if they don’t even know what’s on their books? Oh, yes… pump up the stock prices and screw a few more people out of their money. Blame it on the short sellers! Did anyone see Jon Tester’s appearance today? He flat out blamed short sellers and David Einhorn for MANIPULATING the market. HA!!! If it wasn’t for Einhorn, how long would it have taken the public to know Lehman was MANIPULATING their balance sheet AND the market by doing this? I guess that’s ok, Mr. Tester. Let’s go after the short sellers since they’re the ones who took Lehman down. It had nothing to do with a poorly run business and 25-35+ leveraging that bit them in the behind. That short seller disclosed WHY he was short Lehman and asked Lehman for answers. Einhorn didn’t hide why he was short Lehman.

    So, if we do research on a company, find out they have horrible balance sheets, find out they lied on an earnings conference call and how they got their numbers on a 10k, know the company is leveraged up the ……, have write downs not taken, etc…… It’s not right to short that company while publicly stating WHY your doing it, ……but it’s ok for that company to get away with their own manipulations?? YEA!!!!

    I heard Greenberg from AIG put money into Lehman at $28 per share? Man, that guy just can’t do anything right.

  4. careful Kip, we are a very female friendly blog…yowza yowza. Oh my, was that sexist?

  5. Kip -by the way, you are exactly right.

  6. […] HERE, HERE, and HERE for news and commentary on […]

  7. Female liar or male liar. A liar is a liar is a liar. “Liar liar dress on fire.” 🙂 No discrimination.

  8. kip,
    I am a female, and I am not offended, in fact the opposite, I agree with you. If Callen knew what they were telling her to promote was b.s. then why didn’t she walk away – I guess the pay package cripled her moral compass – what else is new. Personally I pride myself on what I would not do for money – guess that’s why each tick in energy prices is burning my butt – because I didn’t get rich the old fashion way – by screwing someone else.
    and, yeah, when I read the original post – I thought – wow $15 is alot different than $28 huh?

  9. $15 seems a bit expensive given the risk on their books. And this is without a Fed backstop? DB might be making a mistake here.

  10. haha, lehman the lying lemon’s. getting what they deserve. for years, these investment banks have been telling people that the wages they earn are because they can efficiently allocate capital (to themselves i reckon), now that the bubble bursts and the black swan hit the fan, they’re squealing for capital. fooled by randomness by nicholas nassim taleb explains the folly of the banks and finance community, an excellent read and maybe everyone in lehman, goldman, citi etc should get a copy. you can’t predict the future!! it’s just too random.

  11. Efficiently allocating capital = Lying and selling crap.
    There was nothing random or accidental about the process here. These people were committing criminal acts. Nothing random here. You don’t make 500 billion NINJA loans randomly. Boy imagine what you could do with 500 billion in a poor country ? It stinks. Efficient capital allocation hey ? Very funny indeed.

  12. evil-A
    Thanks. I hope it didn’t read as discriminatory? Was not my intention at all. I liked your response. People just need to accept responsibility for their actions. Somehow over the years our society has loosened up on that principle. Your pride of not compromising is an incredible quality to have! While you may feel like the cheaters are winning, they’ll get what’s coming to them sooner or later. Besides, just think how crappy they feel knowing they HAVE to cheat. Also…. you said, “you didn’t get rich the old fashion way”….. meaning…. You’re already rich $$$$$! Good for you.

  13. No kip, poor writing on my part – I am not rich, (I meant, that is most likely why I am not) I guess upper middle class but our family is feeling the eroding of our standard of living a bit each day – now it is just accelerating at break neck speed due to spiking inflation….In fact I feel more “discriminated” against by the few that control all the $$ in the world than by my gender or what others perception may be of being a female. :)….but I do feel good knowing i have my ethics, too bad it won’t pay my home heating oil bill…lol

  14. Same thing in Canada evil-A. Same thing in Russia or China. Everybody is talking about third world and Eastern Europe emerging middle class. It’s strange. Yesterday I saw a monster demonstration even in Hong Kong. Of all places Hong Kong ? Last month it was about food and this month it’s energy. Hey if it’s not in the “core” inflation rate, it doesn’t count.

  15. Funny that Blackrock is going on the offensive and talking up Lehman today – shows (to me) a sign of some very very deep concern that there may be a run on the company.

    We have confidence in the firm, in the leadership,” BlackRock President Robert Kapito said today in an interview. “They have a history of being a team, a place of focus, of working out their situations, of having confidence in the marketplace.”

    Umm, didn’t Lehman just torch a few in LEH’s leadership?

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a9z9yuer4LMo&refer=home

    This reminds me of the Whitehouse spin doctors with regards to Iraq/Iran..

  16. Mr. Mortgage,

    Any updates on the “DB to buy LEH for $15??” Lot’s of chatter again today and Blackrock is hitting the media in full force with all kinds of Lehman support comments. I know they bought in big. Something like, 20-30%. Either it’s pumping up the stock to protect their investment, or pumping it up to purchase more PUTS to make a killing when (if) a buy out is announced. Heavy PUT option activity has been at the $15 strike price. Most of the “unusual” activity hitting in July. With a price of $28 and the latest offering supposedly diluting the share price 30% (don’t know if that’s correct) yields a price in the $19 dollar range. Probably still too expensive, so I could see $15. If Blackrock already has 20-30% invested in Lehman, picking up the rest at $15 wouldn’t make the previous investment at $28 a horrible move. This would give an average share purchase price at approximately $21.
    Anyway, have there been any updates or confirmations of that email?

    Thanks,
    Kip

  17. Before selling to DB, somebody at Blackstone Group, the patrone don Capito, has decided to do a little bit of “pump and dump”. A few shares bought and a little bit of bull, and voilà, all the gang is in a frenzy on that fantastic long term investment. Who says you can’t use the same boiler room techniques. Hey capich ? If Tony Capito says so, it must true. Stupid as the Germans are when it comes to America (IKP and the CDO’s, Dailmer and Chyrler), they will probably paying a stupid price. 🙂
    Pump and dump to the European fools. “Sell when Europe buys.” like the old saying goes.

  18. 2 things…

    1. Kip where did you get the info on Blackrock buying 20-30% this week, can’t find that anywhere?

    2. Weekend meetings already begin see… http://www.cnbc.com/id/25161379

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