- UAE Central Bank Stands by Banks Amid Dubai Crisis
- Dubai's Debt Woes Signal New Era for Creditors
- US Shoppers Spent Less Over Black Friday: NRF
- US Senator Opposes Fed Chief Bernanke Renomination
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- US Treasury Wants Banks to Do More to Ease Mortgages
- Tiger Woods Accepts Full Blame for Car Crash
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Big US Banks May Be Forced to Raise Capital: Bove
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- South Korea Sees Exports Bouncing, but Risks Remain
- Japan Won't Intervene to Weaken Yen: Finance Minister
- Fed Audit Would Hurt Economic Prospects: Bernanke
- Japan Industrial Output Edges Up But Yen May Weigh
- Tiger Woods Wants to Protect Family Privacy: Agent
- Topless Business Is Taking Off
Text Size 
Lehman Brothers shares have been on a wild ride as the investors debate whether the brokerage is going to be able to avoid the fate suffered by Bear Stearns.
In recent days, Lehman [LEH
Loading...
()
] has take steps to sell off some of its riskier assets and eliminate its proprietary trading. There also have been reports that the company is looking overseas for a strategic partner.
However, news that investment manager Loomis Sayles has been buying Lehman Brothers debt over the past several days--and a decision by Merrill Lynch [MER
Loading...
()
]to upgrade Lehman shares to buy--sparked a rally in Lehman shares.
CNBC asked the experts for their insight on the situation.
Gartman: Lehman Down, Not Out
"They protest too much. They keep telling us they don’t need capital – we know they need capital. It's just a matter of time, and where they go and get it…There's a lot of difference between this and Bear Stearns. Lehman’s not going out. They’re going down, however. The market thinks they need capital, everybody’s pressing upon them as a matter of psychology. Callan's done a good job. She's been out in front trying to explain where she stands, where we are. She probably needs to be doing more of that…I’ll be honest, I'm short all the bank stocks, because I think Lehman's in trouble, and it's not going to end for a while.”
Dennis Gartman, The Gartman Letter Founder
Fearing the Financials
"I think what keeps some investors awake at night is not just so much the bad news that’s currently priced in to current valuations in some of these stocks, but what may come next. Specifically, as regards Lehman…there’s a little concern out there regarding their exposure to commercial mortgages and commercial real estate markets, and that seems to be another shoe that has yet to drop."
John Brady, MF Global
Lehman vs. Short-Sellers
"My message basically to investors is don’t let this recent headline dissuade you from great values, generally, in financials. But I don’t think that Lehman is ultimately going to bring it all down. I see this ultimately as a spat basically between some very high profile short-sellers and people who are looking at the Lehman balance sheet and a potential downgrade.”
David Dietze, Point View Financial Services
Print
Email
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
Data is a real-time snapshot *Data is delayed at least 15 minutes