Lehman - Dead Man Walking? Friday, September 12, 2008
Regardless of their management's efforts, it looks like the markets have decided that Lehman is dead.
Its' share price has collapsed; CDS prices for its' bonds are astronomical; I'm told that credit lines and counterparty limts to Lehman are being savagely cut.
It's almost like a horror story where the body on the hospital slab is alive and its brain is functioning but the Doctors surrounding the body can't tell and so decide it's more humane to turn the support systems off.
Meanwhile, the Fed are apparently trying to organise a sale of its "organs" to other banks.
The carnage in the City from the credit crunch is frightening.
- Bear Sterns gone
- Dresdner Kleinwort parcelled off to Commerzbank in a cut-price deal
- Lehmans looking doomed
And it doesn't end there. Merrill is now being spoken of as the next victim; talk of a break-up of UBS is common place.
The City is a depressing place to be.