WaMu es mas macho!

WaMu es mas macho...

Lehman Expected to File for Bankruptcy Protection

New York Times, September 14

According to people briefed on the matter, Lehman Brothers will file for bankruptcy protection on Sunday night, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago.

Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, while its subsidiaries will remain solvent while the firm liquidates its holdings, these people said. A consortium of banks will provide a financial backstop to help provide an orderly winding down of the 158-year-old investment bank. And the Federal Reserve has agreed to accept lower-quality assets in return for loans from the government.

But Lehman’s filing is unlikely to resemble those of other companies that seek bankruptcy protection. Because of the harsher treatment that federal bankruptcy law applies to financial-services firm, Lehman cannot hope to reorganize and survive as a going concern. It will instead liquidate its holdings.

WaMu es mas macho, but perhaps not by much...

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Oh, and by the way, AIG, Merrill Lynch are in pretty tough shape, too.

Beware the ides of September... Probably going to be "bumpy" tomorrow in lower Manhattan.