Lehman Brothers still faces antsy markets

For all the talk abut how Lehman Brothers no longer is just a bond shop, when the Bear Stearns news went down, the fear spread directly to Lehman Brothers. The sense that the firm is at immediate risk, however, has waned. It's 1Q earnings were not a disaster, and CFO Erin Callan seems to be saying all the rights things about transparency. According to Business Week Online, Deutsche Bank's star analyst Michael Mayo believes Lehman's $2 billion working capital line with 40 banks is "proof that counterparties haven't lost confidence in the broker-dealer." The new Fed facility also helps, as CEO Dick Fuld took pains to note. Still, people want more information about Lehman's exposure to toxic bonds. Until that happens, there will be continued skepticism associated with the firm.  

For more:
- here's the Business Week Online article

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