Lehman Fills for Chapter 11

It’s official. After 158 years of business, Lehman Brothers (LEH) is no more. The company has filed for Chapter 11. I was glad to see the Fed walk away from saving them. A year ago, LEH was going for about $60 a share. The current bid is for 70 cents a share.
In a very exciting Sunday, Bank of America (BAC) announced that it’s buying Merrill Lynch (MER) for $29 a share. Now Morgan (MS) and Goldman (GS) are the last two independent I-banks standing.
That’s not all. There’s talk of a Fed rate cut today (bad idea). Also, AIG (AIG) is in very big trouble and is scrambling to raise money. Oil is also down over $4 and is now below $97.

Posted by on September 15th, 2008 at 6:49 am


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