No one's buying the Lehman Brothers story anymore. It's big day has come and gone--and people are even more pessimistic than before. Some analysts had been recommending the stock on a valuation basis. But Citigroup, Deutsche Bank and Goldman Sachs all downgraded the bank to hold. The capital raising plans have done little to raise hopes. As of now, the idea of a takeover--more likely a take-under--is again gaining currency. Richard Bove told MarketWatch, "It is increasingly evident that outside intervention in the form of a hostile takeover is a necessity." Hostile may not be the right word. CNBC reports that CEO Richard Fuld is shopping the whole firm. He suggested as much when he emphasized earlier that he was open to all strategic alternatives. One would guess that price will be the sticking point.

For more:
- here's a MarketWatch article  
- here's the CNBC article
- Time for Fuld to quit? Article
- Lehman CDS spreads wider than Bear Stearns's. Article

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