BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Lehman Still Awaiting Necessary Capital

Market Movers

by Felix Salmon
Main
Wine-Price Datapoints of the Day   Blogonomics: What CFAs Read

Recent Blog Posts

Links

Aug 20 2008 8:19am EDT

Lehman: Still Awaiting Necessary Capital

The latest bright idea emanating from the office of Dick Fuld would seem to be a highly complex transaction involving warrants and call options and what have you. Take away the jargon, however, and the proposed deal seems quite simple: Lehman basically wants a high-interest, non-recourse loan, secured against its asset-management business.

I suspect it's not going to happen -- just as the $5 billion bail-out by the Koreans didn't happen either. Fuld is in no position to dictate terms, and any potential buyer knows that the longer they wait, the better the deal they're likely to get. Bear failed because it didn't have friends when it needed them; we'll find out soon enough how well-liked Lehman is. Does anybody really want Lehman to survive as an independent entity? That's the big question now.

. □

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com
Like Portfolio on Facebook

Come on, like us—you know you want to.

Follow Portfolio on Twitter

Follow us and if you're an innovative entrepreneur, we'll return the favor.

The Mix

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

People & Ideas

Whisky To-Go-Go

Now there's a company that let's you taste your knowledge of fine blended Scotches by mixing a whisky of your own. Read More