Recall all the rumors about Bear Stearns 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 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

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