Anthony M. Freed
Your Mortgage Or Your Life
Lehman Brothers may find themselves edging closer to disaster in today’s trading with word of nervous Federal Regulators supposedly making secret phone calls to follow up on”rumors” that Credit Suisse had withdrawn one of Leman’s remaining lines of credit. According to reports that began to surface in the wee hours of the morning, Federal Officials made the call sometime this last month and were reassured by Credit Suisse officials that all lines were still available, and they gave no indication that would change any time soon, for whatever that is worth. And as if it were not bad enough that ‘mom’ had to call their friends house and check up them, it turns out that Lehman might have also been stood up by their date late last week.
The fickle suitor is none other than the Korean Sovereign Wealth fund, who has been seen sniffing around one end of Lehman or another, trying to figure out which is the half that stinks. Lehman will have to figure out some way to come out on top, and soon. I am still confident we will hear an announcement from Lehman by this time next week regarding the securing of much need capital, but my fear now is that if one reached, it may only be in the short term interests of Lehman, and that their long term out look will be grim, with diminished cash flows and a significant level of C and D paper still on their books. Think twice if you are long on Lehman.
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