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Fate of Lehman Brothers Holders Inc.- Who will save Lehman Brothers?

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 13, 2008

As I always endorsed Financials has no boundary, nor politics. There is a big buzz in economic arena growing Chinese power; people even start saying The Chinese already owned you. Now, they own the bank where you deposit the money. Money goes back to the original owner. What’s wrong with that?

You are in the Matrix. You can always have the “blue” pill.

Who is Lehman Brothers?

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world.

Richard S. Fuld, Jr.
Chairman and Chief Executive Officer

Richard S. Fuld, Jr. has been chairman of the Board of Directors of Lehman Brothers Holdings Inc. and Lehman Brothers Inc. since 1994 and chief executive officer of the Company since 1993. He is chairman of Lehman Brothers’ Executive Committee.

Mr. Fuld was president and chief operating officer of Lehman Brothers Holdings Inc. and Lehman Brothers Inc. from 1993 to 1994. He was president and co-chief executive officer of the Lehman Brothers Division of Shearson Lehman Brothers Inc. from 1990 to 1993. Mr. Fuld was a vice chairman of Shearson Lehman Brothers from 1984 until 1990 and has been a director of Lehman Brothers Inc. since 1984. He joined Lehman Brothers in 1969.

Mr. Fuld serves on the Board of Directors of the Federal Reserve Bank of New York and is a member of the Executive Committee of the Board of Directors of The Partnership for New York City. He is a member of the International Business Council of the World Economic Forum and The Business Council. In addition, he serves on the Board of Trustees of Middlebury College and NewYork-Presbyterian Hospital, as well as on the Board of Directors of the Robin Hood Foundation.

Mr. Fuld received his B.A. from the University of Colorado and his M.B.A. from the New York University Stern School of Business.

As U.S. Treasury officials made it clear the government will not bail out Lehman Bros., the Federal Reserve Bank of New York met Friday night with Wall Street executives in an effort to forestall the collapse of the investment firm and shore up rapidly weakening financial markets.

The New York Fed called the emergency meeting Friday evening, Fed spokeswoman Michelle Smith confirmed the meeting but did not disclose which financial institutions participated in the meeting or whether the group had reached any decisions. But Smith told media outlets that that Treasury Secretary Henry Paulson, New York Fed President Timothy Geithner and Securities and Exchange Commission Chairman Christopher Cox were present.

There are limits to the percentage of ownership in combination with voting share control, but your point is well taken. They own us anyway because they have the power to trash our dollars and treasury debt… thus the FNM and FRE bonds bailout.

Since the late 80s with George HW Bushes bail out and destruction of the Savings and Loans, the American Insurance and Banking industries have led the country to unparalleled debt.

Under Clinton, Stock fraud and audacious public offerings with nothing but the thinnest of paper to support led to the thieving of the American investor.

George W’s term has been preoccupied with Terrorist and the Thieves continue.

Lehman got bids for its asset-management business from private-equity firms including Bain Capital LLC and Clayton Dubilier & Rice Inc. The offers value the unit at about $5 billion, Bloomberg News reported, citing unidentified people familiar with the auction.

Investors focused on the future of investment bank Lehman Brothers on Friday, weighing heavily on financial shares on Friday in a volatile day on Wall Street, but stocks finished mostly higher as prices for oil and other commodities rose.
Oil prices inched higher as Hurricane Ike headed for the Texas Gulf Coast and threatened U.S. crude oil and refinery production.
Investors, meanwhile, pared back dollar exposure over a weekend set to be pivotal to Lehman’s future, driving the euro to session highs. Data showing a second straight month of declines in U.S. retail sales also weighed on the dollar.
Spot gold gained 2 percent as the dollar declined, with the yellow metal’s rally leading precious metals prices higher across the board while U.S. Treasury bonds traded mostly lower as stocks pared early losses, sapping safe-haven bidding for government debt.

Concern that Lehman Brothers Holdings Inc may fail to find a buyer because the U.S. government is reluctant to provide financial backing sent the investment bank’s shares tumbling to a nearly 14-year low.
Lehman’s bonds also dropped ahead of what is expected to be a series of frantic calls this weekend between Lehman, U.S. regulators and potential bidders. Bank of America Corp is widely seen as a leading contender, with British bank Barclays Plc also cited as a possibility.

“Lehman is a proxy for the U.S. markets to some extent,” said Jim Fehrenbach, head of Nasdaq trading at Piper Jaffray in Minneapolis. “Where Lehman goes so will the market in the short term.”
U.S. stocks finished mixed Friday as investors keep eyes on the fate of Lehman Brothers Holders Inc.
The troubled financial sector continued to slide as Lehman races to find a buyer to sell itself. Shares of the U.S. fourth largest investment bank have declined more than 90 percent for the year. The market is anticipating that Lehman will arrive at a deal over the weekend.

The U.S. government reported Friday that retail sales unexpectedly fell in August, adding to concerns about the impact of the housing slump and a faltering labor market on household spending.

The Dow Jones average fell 11.72, or 0.10 percent, to 11,421.99.The Standard & Poor’s 500 index rose 2.65, or 0.21 percent, to 1,251.70, and the Nasdaq composite index rose 3.05, or 0.14 percent, to 2,261.27.
I hope good results for leh employees, trading partners and share holders. LEH is a victim, and she suffered too much already. sad..

Like this article! ‹ What goes UP must come DOWN ! But is that “always” true … Robert E. Diamond Jr. plan- Analysis on Barclays PLC and Lehman Brothers deal! ›
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