Skip to search.
Make Y! My Homepage
 
  1. Drag the "Y!" and drop it onto the "Home" icon.
  2. Select "Yes" from the pop up window.
  3. Nothing, you're done.

If this didn't work for you see detailed instructions

Close this window

Lehman's Fuld Buys Time, But the Bleeding Continues

Posted Jun 17, 2008 01:29pm EDT by Aaron Task in Investing, Newsmakers, Banking
Related: LEH

What a difference a day makes, especially on Wall Street.

On Monday, the talk was how Lehman Brothers had stemmed the bleeding by announcing a loss that wasn't worse than expected and reducing its mortgage exposure. Meanwhile, CEO Dick Fuld received high marks for taking the heat and admitting responsibility for the mess.

Fuld "offered a spirited defense of his stewardship of the embattled investment bank on Monday," gushed The NYT's Louise Story.

Having previously called for his head, Henry Blodget says Fuld bought himself some time by coming out of the bunker, owning up to mistakes and discussing how Lehman moves forward, presumably as an independent entity.

But Lehman shares never made it back to $28 -- the level from where the company did its $6 billion dilution last week. Today, the stock is tumbling anew Tuesday after several analysts question whether more write-downs are coming from Lehman, which is something Fuld may not be able to survive.

"While Lehman has been towards the front of industry as far as balance sheet de-leveraging, questions around appropriateness of marks, size of remaining exposures and recent management changes keep us on the sidelines," writes Banc of America analyst Michael Hecht, who raised his 2008 loss estimates.

Go to Tech Ticker

There are no comments yet

Post a comment

Sign in to post a comment, or Sign up for a free account.
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.