Recall all the rumors about Bear Stearns [1] right before its final implosion; they were pretty intense--so intense that the SEC is looking into whether they were fanned by traders with massive short positions. The shorts won that battle. While Lehman Brothers [2] has been hit with similar rumors, the shorts, this time, took a beating, the New York Post notes. There was heavy put buying activity, but the announcement that it has raised $4 billion led to a big rally. By one estimate, the put buyers lost $300 million. Ouch! This may not be the last round in the bulls vs. bears war over specific firms, but another bear Stearns-like home run does not seem likely.

For more:
- here's the Post article [3]

Related Articles:
Private equity vs. the shorts. Article [4]
Lehman Brothers still faces antsy markets. Article [5]