Lehman Goes Bust

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September 2008
- Bank of America in Talks to Buy Lehman Bros.
  
  Wall Street Journal | Sep 11, 08 4:26 PM CDT
  
  (Newser) - Bank of America is in preliminary talks to acquire struggling investment bank Lehman Brothers, the Wall Street Journal reports. Lehman has been shopping itself around in a bid to stave off collapse, but potential suitors are wary. Many want Washington to assist with a sale of the bank, whose shares dipped more than 40%, to under $5, today. More »
- Lehman Doomed by Market Schadenfreude, Bear Bailout
  
  Bloomberg | Sep 11, 08 10:18 AM CDT
  
  (Newser) - All it took was a single anonymously sourced report Tuesday to send Lehman Brothers down about 50% in 15 minutes. This proves two things, writes Michael Lewis: The market is jittery, and “Lehman Brothers is doomed.” The big bank’s fate is sealed in part “because it still owns all sorts of crappy assets at inflated prices,” but also because people are enjoying watching its downfall. More »
- Lehman: Finding a Buyer Will Be Tough
  
  Bloomberg | Sep 11, 08 8:30 AM CDT
  
  (Newser) - Lehman Brothers is in the same bind as home sellers in a tight real estate market: they have a great asset for sale, but nobody has the money to buy, reports Bloomberg. The bank hopes to auction 55% of its asset-management fund, but experts say interested investors may not be able to finance a takeover that will cost billions. More »
- Lehman to Sell Off Assets; Faces Record $3.9B Loss
  
  Wall Street Journal | Sep 10, 08 8:09 AM CDT
  
  (Newser) - Facing a record third-quarter loss of $3.9 billion, beleaguered investment bank Lehman Brothers is planning a fire sale of assets to help shore up its sagging capital base, reports the Wall Street Journal. The company said it would spin off its commercial real estate holdings, and auction of a majority share in its investment-management business. The bank also plans to cut dividends 93%. More »
- Lehman Bros. to Report 3Q Stats Today in Bid to Calm Market
  
  MarketWatch | Sep 10, 08 1:59 AM CDT
  
  (Newser) - Lehman Brothers plans to release its third-quarter results and "key strategic initiatives" this morning—a week earlier than expected—in a bid to calm investors, Marketwatch reports. The securities firm took its biggest Wall Street walloping in history yesterday, with share prices plunging 45% to finish 85% down from a year ago. More »
- Lehman Considers 'Good Bank/Bad Bank' Split
  
  New York Times | Sep 5, 08 10:22 AM CDT
  
  (Newser) - Lehman Brothers is considering splitting itself into two banks, a “bad bank” to house its $30 billion in troubled mortgage and real estate holdings, and a “good bank” to carry on with the help of a new investor or two, the New York Times reports. The move, which is not unprecedented, may be necessary to re-instill confidence in the beleaguered institution. More »
- South Korean Banks Offer $5.3B for Stake in Lehman
  
  Associated Press | Sep 3, 08 7:47 AM CDT
  
  (Newser) - Korea Development Bank—which in August backed out of negotiations to acquire struggling Lehman Brothers—is back with bid for a 25% stake in the capital-starved bank for as much as $5.3 billion, reports the AP. The state-owned lender says it will form a consortium of South Korean banks to pay for the deal, and could increase its stake later. More »
August 2008
- Lehman to Lay Off Another 1,500
  
  New York Times | Aug 29, 08 2:21 AM CDT
  
  (Newser) - Lehman Brothers is about to lay off another 1,500 employees—6% of its workforce—in its fourth round of cuts this year, an insider told the New York Times . The struggling financial services giant has already shed over 6,000 jobs since last summer. A total of some 101,000 Wall Street workers have been axed in 2008, and many industry analysts believe the bloodshed isn't over. More »
- Korean Bank Warned Off Lehman Bros. Buy
  
  Financial Times (UK) | Aug 25, 08 2:49 PM CDT
  
  (Newser) - The Korea Development Bank was warned today of rushing into a bid for Lehman Brothers by South Korea’s top banking official, the Financial Times reports. A Lehman investment may constitute too much risk for a state-owned bank, Jun Kwang-woo warned after last week’s news that, though KDB’s talks with the US investment giant hadn’t reach a deal, one was still a “possibility.” More »
- Secret Lehman Sale Talks Fail
  
  Financial Times (UK) | Aug 21, 08 9:48 AM CDT
  
  (Newser) - Secret talks earlier this month to sell up to half of struggling US investment bank Lehman Brothers to South Korean or Chinese buyers fell apart after last-minutes squabbles over details, the Financial Times reports. The bank, which is expected to announce up to $4 billion in writedowns next month, was said to be asking 50% above its book value. More »
- Lehman Shops Key Unit in Quest for Cash
  
  Wall Street Journal | Aug 19, 08 8:50 AM CDT
  
  (Newser) - Lehman Brothers is shopping a piece of its investment management unit, the Wall Street Journal reports, joining other large banks in shedding strong-performing businesses to offset mortgage meltdown losses. Lehman’s management business, which includes Neuberger Berman and hosts 27 mutual funds managing $22 billion in individual and institutional wealth, has been a rare bright spot for the company. More »
July 2008
- Demonizing Shorters Won't Save the Likes of Lehman
  
  New York | Jul 19, 08 9:34 AM CDT
  
  (Newser) - Short-sellers have the power to utterly crush Lehman Brothers, as they did Bear Stearns, writes James Cramer in New York , but it's largely Lehman's own fault. Lehman shares much of the "mismanagement, arrogance and recklessness" that brought down Bear, Cramer opines in a piece that says excoriating short-selling hedge funds for running down Lehman stock, and accusing them of manipulation, misses the point. More »
- Lehman Bros. Pondering Privatization
  
  New York Post | Jul 15, 08 10:58 AM CDT
  
  (Newser) - Lehman Brothers’ CEO is considering ways for the company to privatize itself, the New York Post reports. The financial-services firm has seen its share price fall 79% this year—including 15% yesterday—and Richard Fuld is hoping to ward off bargain-hunters. "The idea is why sell to someone else at so cheap a price when they could buy themselves," a source said. More »
June 2008
- Lehman Loses $2.8B; CEO Faces the Music
  
  New York Times | Jun 16, 08 11:30 AM CDT
  
  (Newser) - A week after skipping Lehman Brothers' first announcement of its $2.8-billion second-quarter loss, CEO Richard S. Fuld took the microphone himself today to made it official, attempting to reassure analysts and shareholders in the wake of the bank's executive shakeup. "It’s now my job to make sure that we execute," he said after removing president Joseph Gregory and CFO Erin Callan, who had delivered the bad news until now, the New York Times reports. More »
- Lehman Axes 2 Top Execs in Effort to Stem Slide
  
  New York Times | Jun 12, 08 10:58 AM CDT
  
  (Newser) - Lehman Brothers, struggling to allay mounting worries about the company's balance sheet, today axed its COO and CFO. The move comes days after the bank reported a $2.8 billion quarterly loss. Joseph Gregory and Erin Callan will both remain at Lehman, but will be replaced at the top by two veterans, global head of equities Herbert McDade III and administrative officer Ian Lowitt, the New York Times reports. More »
- Lehman Posts $2.8B Loss, Stuns Wall St.
  
  Wall Street Journal | Jun 9, 08 11:00 AM CDT
  
  (Newser) - Lehman Brothers shocked Wall Street today by posting a $2.8 billion quarterly loss, its first in 14 years and far worse than expected, the Wall Street Journal reports. Other downmarket reports added to investor anxiety, sent stocks falling, and boosted fears that banks and securities firms remain troubled. As expected, Lehman also announced a plan to raise $6 billion in new capital. More »
- Lehman, GM Drive Stocks Down
  
  MarketWatch | Jun 3, 08 3:41 PM CDT
  
  (Newser) - The markets enjoyed modest gains before dropping sharply this afternoon as rumors swirled that Lehman Brothers may face a liquidity problem and automakers reported weak May sales, MarketWatch reports. The Dow closed down 100.97 at 12,402.85, the Nasdaq down 11.05 at 2,480.48, and the S&P 500 down 8.02 at 1,377.65. More »
March 2008
- Lehman Is Selling $3B in Shares
  
  Bloomberg | Mar 31, 08 7:25 PM CDT
  
  (Newser) - Lehman Brothers is selling $3 billion in new shares to allay fears after its stock dropped 42% this year, Bloomberg reports. "We still maintain that we don't need capital, but we've realized that perception is the dominant issue in today's markets,'' said CFO Erin Callan. Lehman fell up to 48% this month on rumors that it lacked cash and faced a Bear Stearns-style meltdown. More »
- Lehman Sues to Reclaim $350M Lost in Swindle
  
  Wall Street Journal | Mar 31, 08 8:15 AM CDT
  
  (Newser) - Lehman Brothers is suing Japanese trading company Marubeni, seeking to recover $350 million lost in a scam apparently engineered by two of the company’s employees. The scheme involved forged documents purportedly bearing a board member’s seal and two meetings at Marubeni headquarters, including one with an impostor posing as an executive, reports the Wall Street Journal. Marubeni has denied wrongdoing and says it won’t pay. More »
- Japanese Swindle Could Cost Lehman $250M
  
  Wall Street Journal | Mar 29, 08 8:44 AM CDT
  
  (Newser) - Possible fraud involving forged documents from a Japanese trading firm may have cost Lehman Brothers $250 million, the Wall Street Journal reports. The investment bank loaned funds to a Japanese biotech firm last year; the transaction was secured by top trading company Marubeni Corp. But the biotech firm filed for bankruptcy March 19, and the funds still haven’t been paid back. More »