Tough situation getting worse for Lehman Brothers

The conventional wisdom is that Lehman Brothers will not implode the way Bear Stearns did, thanks mainly to its access to the Fed credit facility. But as one Lehman short seller puts it via Seeking Alpha, "the expectations seem to anticipate that there will be an orderly, gradual unwinding of Lehman Brothers supported by the Fed promise [or actual supply] of liquidity, where shareholders likely get wiped out [or close to it], and senior lenders are likely to recover most of their money." Not a pretty picture. Given that there doesn't appear to be any real buyers out there, and that capital raising will be hard, some are suggesting that a management-led buyout may be the answer. The New York Post reports that CEO Dick Fuld is getting serious about such a move. The firm may be cheap enough, but it certainly cannot handle a whole lot more debt. There are also rumors that Lehman may sell money manager Neuberger Berman, which makes a lot of sense.  

For more:
- here's the item on Seeking Alpha   
- here's the New York Post item
- here's a CNBC article
- here's a bullish case for Lehman. Item

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