Wall Street, eating its own

By: Housing Wire staff
March 17, 2008

Dealbreaker — one of our all-time favorite sites over here at HW — had a brief little ditty up earlier today about Lehman Brothers. Similar to our story, but without the whole bit about the stock taking a bath in afternoon trading.

Anyway, 52 comments later and it’s clear that someone at Lehman didn’t take their morning dose of __________.

Of course, there is also the obligatory theory float that says Goldman Sachs, which is rumored to have hit Bear Stearns, now wants to break the backs at Lehman. We’ve heard that sort of take for months now, ever since Bear’s first two hedge funds went South for the winter. One alleged insider’s take:

“Of course, LEH is again tanking today, and the most ominous rumor I’ve heard has to do with Goldman trying to break us while they have the chance (like they did to Bear),” one Lehman investor said on the condition of anonymity. “The resulting fire-sale would be an even higher quality corporate liquidation bargain than Bear Stearns’ portfolio, which was legitimately stinking up the joint. I can see how that would greatly benefit the big firms, even if it is vile.”

He adds that Lehman should have plenty of money so long as counterparties and investors don’t panic.

It’s an old line, sure, but coming from a Lehman insider? Sort of gives it a certain degree of panache that it wouldn’t have if we just casually mentioned it here in the BuzzPost.