Lehman: Man Bites Dog Latest

So that recently controversial stock slumpage—blamed by Lehman (LEH) mouthpieces on irresponsible market rumors and short-sellers—was entirely fact-based.

Two things:

• Fuld me once, shame on you, etc. etc.
• No Fuld like an old Fuld.

Lehman May Be Victim of Fraud [$$]
by Andrew Morse
The Wall Street Journal Mar. 28 2008

Lehman to Sue Japan's Marubeni, Claiming Loan Fraud
by Oliver Biggadike and Takashi Ueno
Bloomberg Mar. 29 2008

Comments

[Desperate.:]

Why everyone is so anxious to try and call the bottom on financials is beyond me. No one really seemed to notice, GS, LEH and MS all have had disasterous performance y/o/y.

If you don't want to short, don't. But with all the "fantasy-based" products that generated profits gone, not sure why anyone thinks this group won't just trade sideways for years once a bottom is found.

2008 Mar 30 01:31 PM

[venividivici:]

I stopped trading in August when I realised that the American financial system was totally lacking in credibility and it has just gotten worse and worse since then. God knows where all of this will end but it is going to be very ugly.

2008 Mar 30 11:48 PM

[Ex15:26:]

Greg,
I am assuming that you're posting this "tounge-in-cheekishly"...
Of course if not, I agree with your point that those darn Japanese brokers are probably responsible for the entire credit crisis and the housing slump too. While we're at it, why not blame this whole recession that we're not officially in on them as well.
I am convinced my LEH puts are even better.... unless of course Uncle Ben comes in an nationalizes them at $50 a share, then, it might hurt me a bit.

2008 Mar 31 12:27 AM

[sammyg123:]

It's funny that Lehman is accusing another securities firm of fraud. I have heard that it is dangerous to throw stones when you live in a glass house. I have also noticed that blame is used to cover one's own blemishes. Most US financial institutions are highly leveraged, including Lehman. Lehman's book is most like Bear Stearns, and they are in trouble, just like many other US financial firms. So, regardless of the lawsuit's merit, it is likely that this is a PR move to distract attention away from fundamental issues. Don't forget that we have a right to free speech in America. Politicians lie, business leaders lie, and so does everybody else. However, the truth is that Lehman is in the same trouble in which all derivatives laden securities firms are. There is no hiding this, in spite of the PR chaff that they are throwing off with this lawsuit business. 250 million dollars is chump change compared to losses thus far, as well as projections for loss increases. I have no position in Lehman, long or short. It's bailout time, so Lehman just might make it through this. This irks me, because I believe in creative destruction.

2008 Mar 31 12:49 AM