So what to make of the Lehman news?

Lehman Brothers' news was designed to quell market fears. It really is being whipped around by extreme stock and CDS action. But did the announcement do the trick? Well, the general view still seems to be that the glass is at least half empty. It's never a good sign to announce deals before they are struck. But CEO Richard Fuld did make clear that he is open to strategic alternatives. CreditSights says this might still happen, counting Nomura, HSBC, Barclays and even Goldman Sachs as potential suitors for either the whole firm or a significant stake. Some private equity firms may also be interested. You get the feeling that any deal would be of the take-under variety. It does seem like a strategic deal of this magnitude is the only answer. Lehman may have found a way to survive, but surviving as a low-tier investment bank may be worse than death.

For more:
- here's an AP article
- here's a Seeking Alpha wrap up

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