iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
21,511 Blog Posts

An [Un]Fortunate Ending

Federal Reserve and U.S. Treasury brokering talks to rip out Lehman’s spine.

Praise be to Premier Paulson of the USSA.

Merrill’s next.

NOTE: How are my predictions for 2008 working out, so far? Back to my diamond encrusted time machine.

UPDATE: Here are the notable bagholders of Lehman Brothers Holdings Inc. [[LEH]] stock, sorted by shares held.

AXA (ADR) [[AXA]] : 65.7 mill.

Fidelity: 39.5 mill.

Cleanbridge: 39.1 mill.

Barclays PLC (ADR) [[BCS]] : 27.1 mill.

Wellington: 25.5 mill.

Janus Capital Group Inc. [[JNS]] : 22.4 mill.

State Street Corporation [[STT]] : 21.7 mill.

Vanguard: 20 mill.

Norges: 17.5 mill.

Pzena Investment Management, Inc. [[PZN]] : 11.6 mill.

Capguard Trust: 10.6 mill.

Soros: 9.4 mill.

T. Rowe Price Group, Inc. [[TROW]] : 8.3 mill.

JPMorgan Chase & Co. JPMorgan Chase & Co. JPMorgan Chase & Co. [[JPM]] : 6.7 mill.

Oh, in case you are wondering, one of Legg Mason’s funds started a new position in Lehman last quarter: 2 million shares, likely north of $15.

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67 comments

  1. Tiajuana police blotter
    Tiajuana police blotter

    Old man in a robe and pointy hat files sexual assualt charges against small primate with cardboard sign.

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  2. poe

    There was old lady who lived in a shoe, and now she’s foreclosed and in a shoe box. But that shoe box is owned by the USA now. So its all good in the hood.

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  3. Donny

    Is this the same U.S. Treasury that was encouraging 3rd World dictatorships to invest in our stupid banks earlier this year.

    I see a fucking line of bag holders, who are all way under water. I don’t think these 3rd world fuckfaces are interested in losing more money.

    This presents a serious fucking problem for the future, as more financials face solvency issues. Citibank comes to mind.

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  4. Hank Paulson, Professional Matchmaker
    Hank Paulson, Professional Matchmaker

    Apparently the US Treasury has turned into a sort of “animal shelter”, where we try and find loving homes for unwanted dogs. In the meantime, we keep them on premises and feed them government cheese.

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  5. CubsRock

    Anyone can make predictions and pick stocks. Profiting from those ideas is what makes…. oh never mind, the world is going to explode soon.

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  6. The Fly

    Don’t worry. Fannie Mae will buy Citi.

    When BAC goes under, Citi will buy BAC.

    At the end, we will have THE BANK OF THE UNITED STATES.

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  7. Nihilist Investor

    Another $ 600 B on the U.S. balance sheet. It is obvious nobody will touch Lehman without a government guarentee for this worthless garbage.

    Where is the outrage?? Paulson is doing more damage to the country in a couple of weeks than anyone can fathom. The reprecussions of this will be felt for generations, way longer than the Iraq war.

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  8. Dick Fuld's French Nanny
    Dick Fuld's French Nanny

    J’aime le fromage!!

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  9. Danny

    Cramer is bashing BM and LM. Hah! A month late, a-hole.

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  10. Angelo Mozilo

    Dear Hank:
    Would it be ok to use part of my severance package to buy LEH? I mean, it’s not like I’m not familiar with the business. I want back in. You know how boring it is playing golf and tanning all day? It really sucks.

    Big “Ange”

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  11. Hank Paulson

    Everybody, please SHUT UP!!!….

    I’m trying to think ovah heah.

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  12. Ben Bernanke

    We could hold a bake sale? My wife mikes a very tasty strawberry blintz. Hey, just throwing out ideas here.

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  13. Aris

    it’s going to be so great: go to the department of motor vehicles to get new license plates and a mortgage, credit card, etc. they should probably just combine the operations at the DSS. probably throw in an army recruiter or two at window #10.

    i hope they have some of those blood pressure monitors there, so the kids can play during the 4hr wait.

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  14. JakeGint

    J’aime le fromage!!

    __________

    ^^^^^^ “Comment of the Year.” ^^^^^^^

    (Jeremy, get to work on the visuals for this one, pronto)

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  15. kd

    I just read your predictions and all I have to say is that is fucking amazing. This shit should be all over CNBC. Truely a great job.
    WOW

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  16. PPT Member

    We have been on the phone, and you will get your answer no later than Sunday evening. Count on it. The American People need to understand that we have everything under control.

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  17. Dick Fuld's French Nanny
    Dick Fuld's French Nanny

    Merci beaucoup, Jake!!

    Je m’appelle aussi “Nardsbrau” – shorted LEH at $44 thanks to the Fly…sadly covering at $33…

    La belle fromage d’Amerique a tous!!

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  18. Soros went long LEH – “The Fly” went short – Soros loses. There is some closed end fund – DCS connected to David Dreman down big too. It is possible that BAC and WFC and JPM and GS will end up owning the banking system.

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  19. Vladimir W. Bush

    Comrades, comrades …please be aware. This is new policy crafted by Politburo of USSA. We take over all banks. There is no need for bank in our new socialistic society. No need for currency either. All surpluses distributed equally among your comrades. You work for your government and we provide food, clothing and shelter. Fresh water, soft loaf of bread and a cardboard over the head is all that people of Mother America need.

    Thank you for your patience

    Vladimir W. Bush
    Secretary General of USSA

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  20. Ricard Fooled

    “J’aime le fromage de chèvre” est plus précis

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  21. bait bucket

    stop whining and eat your gruel.

    phil graham

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  22. Aris

    i used to work for one of those firms listed above, and LEH, if they’re still holding it currently, wouldn’t be the first large position they rode straight into the ground.

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  23. RC

    Anybody know if Einhorn is still short LEH?

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  24. The One Formerly Known as Hank Paulson
    The One Formerly Known as Hank Paulson

    I have legally changed my name. Please only refer to me from now on as: Henry Perestroika.

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  25. Greekpunk

    When are the Feds going to start putting pernicious bankers behind bars? I guess spending the populace’s money bailing them out is just taking up too many “resources” to address such insignificant transgressions.

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  26. Hank Paulson

    If I hear another word about “counter-party risk”, I’m gonna lop off some heads! Do you hear me? Bernanke? Fuld? You with me on this? The Heads of State in the Motherland will not be happy if we blow this! This has to go through. Now concentrate, and pass me another mug of Kvass and a bowl of those beets…

    Everybody else, SHUT UP!!! Or I’ll kill you!

    Now, let’s start from the beginning and rehearse our speeches again….

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  27. bait bucket

    what deflation?

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  28. Greekpunk

    With the govt now the owners of the majority of homes in the USSA, I can see the following dialogue taking place in the years to come. I’m a college student and am unaware of all technicalities, but this contrived conversation should convey the message….

    XYZ Developer: “We like your property’s location and we want to give you the opportunity to profit amidst this real estate depression. How about we give you it’s assessed value and call it a deal?”

    Resident: “No, thank you. I have no desire to relocate.”

    XYZ Developer: “Ok, fine. We’ll go to the owner of the property.”

    Resident: “You’re looking at the owner.”

    XYZ Developer: “That’s odd. According to court/bank records, the govt’s conservatorship owns this home. We did some additional research that you have all breached the technicalities of your mortgage by being late multiple months in a row. See you in court.”

    XYZ Developer says to the Govt: “We’d like to place a retail complex on the Jones’ land. Technically, they are in violation of their mortgage terms and are subject to seizure of their property. In return, we will construct businesses that generate millions in sales tax revenues.”

    Govt.: “Consider it a done deal.”

    Resident: “Not fair. See you in court.”

    Govt. “We are the court. Now, give us the keys.”

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  29. jakegint is gay

    I say the market rallies up to Dow 11750

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  30. jakegint is happy

    I say the market rallies up to Dow 11642.79, which would be some sort of fib level.

    I fib you not.

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  31. boca

    oh please… Nambla links in your posting name??? Actually I think you might be in love with Jake, or perhaps just obsessed. (You = the above two phony jake posters at 8:46 and 9:27.)

    BTW he loves to argue… oops I mean discuss … so I’ve yet to see baiting work with Jake. Oh well, just another day at the ibc ranch.

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  32. BOOMER

    Buddy of mine is getting divorced. His Nashville house was appraised last summer at 850. Nice part of town called Forest Hills. They listed at 800, to get “all aggressive and shit, ovah heah.”

    Tick tock. Tick tock.

    Just put it under contract.

    $570.

    Should have sold it to Paulson.

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  33. mrkcbill

    Boomer- that probably doesn’t even count the HELOC they probably have against it as well. You know the furniture, vacations, hot tubs and Golf memberships.

    I was wondering the other day what the true finances of all my neighbors was. I just don’t believe a word that is being said from any major money center bank. I think they are all waiting to see what USSA is going to do with the waste. Probably just a few survivors before its done.

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  34. BOOMER

    mrkcbill – everyone is broke. well, just about everyone.

    When I was 25 (holy crap that was 14 yrs ago) I worked for SunTrust. I managed some lenders and had decent lending authority myself. Application after application…broke.

    I can’t even imagine how bad it is now. How many people were “trading up” houses to fund retirement? Double broke. Their own personal CDO. Kaboom.

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  35. Boomer,
    As you know, “under contract” does not = sold
    Any mortgage over $417k is tougher to get
    Of course if the “buyer” puts down ($570 – $417) = $153k no problem

    Some who are under water just stop paying the mortgage, move out and mail the keys to the bank (I mean the USSA)
    The Post Office can start a key drop bin – please include your former home address with the keys. Your government at work.

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  36. Danny

    I know times are tough, but I disagree that “everyone” is broke. I think a lot of people (not the majority, but some) are fiscally conservative and responsible. And I’m not talking about the uber wealthy here.

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  37. May be true Danny, but fiscally conservative probably means invested in mutual funds…

    Once these people get their quarterly statements, will they want to go to cash?
    How will they feel watching the money they will be living on for the rest of their lives vaporize?
    How will the Feds fix that?
    We could soon be going down the side of a mountain pedal to the metal.
    Jeremy/Vincenzo thanks for the editing capability

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  38. George Bush

    We only bailout our buddies. You “little people” are on your own.

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  39. The Fly

    Everyone I know is rich as hell.

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  40. Vladimir W. Bush

    Comrades Danny, Boomer, Mrkcbill. Please stop using language like ‘wealthy’ ‘profit’ ‘broke’ ‘finances’ . These are all capitalistic propaganda. We are living in Communistic society now. No need for these capitalistic lies.

    My Comrade Commissar Paulson is man of remarkable patience but gets angry when he hears word such as ‘wealth’ ‘profit’ and ‘finance’ used by common citizen. Please I ask of you , obey the rules of USSA.

    Vladimir W. Bush
    Secretary General USSA

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  41. DSB

    If you’re still up, read this, rub one out and go to bed.

    http://www.marketwatch.com/news/story/japans-economy-shrinks-3-recent/story.aspx?guid={B584BC3B-518E-45F9-ABAD-5F4DBF087502}

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  42. Aris

    a lot of 401ks at my old firm took big hits this past year, but there’s still plenty of money out there. as long as the birth rate doesn’t drop off like it has in japan and europe, we’ll be fine in a couple of years.

    if people stop having babies, we’re all fucked in a big way.

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  43. bait bucket

    Everyone I know is rich as hell.

    They get a double ration of vodka too.

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  44. Its going to go

    You are truly wise, Master Fly. Upon your sage advice, I shorted LM @43. Since I do not have the infinite wisdom of the fly, could you be so kind to recommend an exit price? Should I short more here? Please advise.

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  45. CubsRock

    It’s going to be tough for the bulls to close this gap before the weekend.

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  46. chivasontherocks

    crack spread exploding to the upside.

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  47. JakeGint

    …if people stop having babies, we’re all fucked in a big way.

    This is purely anecdotal, but almost everyone I know has more than the “average” two kids (ie, “replacement rate”).

    I went to a half decent undergrad and grad school, and had eight “room group” mates from sophomore through senior year.

    We are now all married, and have 25 kids between us, and some are “not done.”

    I’m not too worried about our population.

    __

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  48. JakeGint

    Break out the Crack & Chivas!

    __

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  49. JakeGint

    Could you be so kind to recommend an (LM) exit price? Should I short more here? Please advise.

    What was confusing about “LM to zero?”

    __

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  50. chivasontherocks

    Jake,

    LMAO

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  51. buylo

    chivas, whats LMAO? thanks

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  52. The Zombie

    The Fly is God.
    Another wonderful gap up on SKF.
    Thank you.
    The Fly is God.

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  53. chivasontherocks

    laughing my ass off

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  54. boca

    buylo, it means “Laughing My Ass Off”

    hmmmm. crack (spread), Chivas, and Skiffles…. supplies ready to start trading like maniacs!

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  55. chivasontherocks

    my 3 favorite things

    crack (spread)

    chivas

    skiffles

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  56. JakeGint

    Back to my diamond encrusted time machine…

    Fly, you truly are the “Liberace of Time Travel.”

    __

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  57. Toddo

    Todd Harrison

    09:25:26 AM

    No positions in stocks mentioned.

    The Two-Sided Sword
    That’s the the other side of socialization, right? Once it starts, it’s hard to stop despite the laws of diminishing returns.

    Why wouldn’t Bank America (BAC) want an implicit put from the government?

    If I just plunked down a pretty penny for Countrywide—only to see JPMorgan (JPM) get Bear Stearns backstopped by the Beltway—you can bet I would want the same consideration.

    And it doesn’t stop there.

    If you’re a struggling auto or airline executive, you’re likely eyeing Washington right about now.

    And if you’re Washington, you’re trying to stop the popular perception parade. That’s easier said than done, particularly in the midst of a credit crisis tied together with a complex derivative machination.

    Proving a point in this environment would indeed have profound consequences.

    Adding spice to the mix—but not to be forgotten—is next week’s FOMC meeting.

    The Fed wants to lower rates—I put the odds much higher than the 15% chance Fed Fund Futures are currently indicating—and the early action in the dollar (-80 bips) supports that view.

    My sense is that they’ve got some wiggle room given the 25% commodity pullback since July (as measured by the CRB). The trick will be doing it in a manner that doesn’t (further) upset foreign holders of dollar-denominated assets.

    In case you haven’t noticed, the world isn’t thrilled with the single biggest U.S. export this year: contagion.

    Keep your head up, your risk tight and thoughts positive as we find our way to an easier day.

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  58. nik

    why is KRE so strong? I’m confused.

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  59. JakeGint

    Nik– anticpated rate cut.

    __________

    “Toddo” — is that the real Toddy from Minyan or is that you, Bruce?

    _____

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  60. Toddo

    Todd Harrison

    09:44:21 AM

    position in leh

    Gate Sniffage!

    * I’m allowing for a Snapper–potentially to S&P 1260–but my best guess is to fade (read: sell) equity rallies until the credit picture improves.

    * Retail Sales–should we really be that surprised?

    * We day traded Lehman (LEH) from the long side yesterday in what was the definition of dancing between the elephants. I’m not opposed to doing the same today–and I am, so you know, small–with the thought that the sum of the parts may be greater than the hole.

    * Green beans in the Red Sea? Google (GOOG), Research in Motion (RIMM), Yahoo (YHOO).

    * What are the three things I continue to repeat to myself this morning?

    o Know thyself–you’re tired and it’s been a long, emotional week–trade a bit smaller and do a bit less.

    o The definition of an investment should never be a trade gone awry.

    o Don’t wrestle with someone bigger than you three weeks after knee surgery.

    * Massive corporations sinking, huge hurricanes on the horizon, folks losing their homes, locus, vermin, fire, blood… jeezums, is it any wonder folks are freaked out?

    * I’ve gotta navigate some crosstown traffic at high noon for a particularly important meld. I share that fare in the interest of communication.

    * Good luck Minyans–let’s end this week with some jingle in our jeans and a smile in our heart.
    ========

    ps – its me Jake, copying/pasting fm MV

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  61. JakeGint

    MOS is surprising me this morning as well…

    It’s popped back into its “normal” (downtrend) channel with the move this morning, and looks like it’s headed to it’s 50% two year fib retrace at $91.15.

    That $87.00 trade (the bottom of the channel it had broken down through) is obviously “off the table,” now.

    __

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  62. CMG Burrito Nazi

    NO BURRITO FOR YOU!

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  63. RC

    thanks for FCX!!!

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  64. TraderRenn

    Does anyone else think it isn’t a quinkydink that Jeb Bush was hired on as LEH’s financial advisory two weeks ago?

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  65. CubsRock

    2007 TraderRenn

    FCX doing great, so is my UYM which is basically the same chart.

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  66. The Fly

    First target on LM: $30

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  67. alphadawgg

    “MOS is surprising me this morning as well…”

    Is that Jake-speak for, “Dammit, I’m losing money on my short position in Randee MOS”..?

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