Unlike the heathen “Juice,” “The Fly” is a God fearing man. So, out of respect for good Friday, I will refrain from using obscenities (even though God could care less about such minor offenses).
Apparently, the ungodly folks at S&P downgraded both [[LEH]] and [[GS]] today, citing a “rough” environment.
I’ll say.
“Market volatility and the possibility of further weakening of economic activity may result in a more substantial fall in revenues,” possibly resulting in one-notch downgrades, said Paul Coughlin, S&P’s head of corporate and government ratings, on a conference call.
Actions by the central bank “alleviate much of the concerns that we have about near-term liquidity conditions,” S&P analyst Scott Sprinzen said. “However, we still view the environment as rough near-term for the five broker-dealers.”
S&P said Goldman has very strong liquidity, but that its emphasis on trading and “aggressive” risk appetite expose it to potential for “major missteps.” It also said Lehman has a stable base of funding and strong fundamentals, but could suffer “severely” if the market turns against it.
Sprinzen said Goldman, Merrill and Morgan Stanley also have a “clear advantage” over Lehman, the largest U.S. mortgage underwriter, because they are more diversified.
Let me just say this: LEH is a quadruple sell, with hot mustard on it. Anyone who knows Wall Street understands and acknowledges freely, Lehman is a 2nd rate “high end” bucket shop—with losers at the helm and in the engine room.
Anyone care for a 13 week treasury?
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