Lehman to Liquidate?

Barclays stared into dull gray eyes of Hank Paulson, but he didn’t blink:

The leading proposal had been to divide Lehman into two entities, a “good bank” and a “bad bank.” Under that scenario, Barclays would have bought the parts of Lehman that have been performing well, while a group of 10 to 15 Wall Street companies would agree to absorb losses from the bank’s troubled assets, according to two people briefed on the proposal. Taxpayer money would not be included in such a deal, they said.

But that plan fell apart on Sunday, making it likely that Lehman would be forced to liquidate.

The issue is that no one knows what Lehman is worth, and this is especially true because its share of Big Shitpile may not be worth anything at all.

Comments

[mandt]

Looks like Jr. dropped his duffel bags after 'Mission Accomplished."

[Professor Frink]

I can't believe how many of these Sunday Morning, Double Secret Probation, Financial Giant Liquidation Sales the Bush admin is running.
Everything Must Go!!!! (i.e. be stolen)

[Lew Scannon]

McCain swears the fundamentals of the US economy are sound. Of course, McCain is mentally unsound...........

[actor212]

now now, Lew, McCain's right!

After all, GDP is at a brisk 3.3%! Caviar prices have never been lower! Why, he can buy an eighth house for half the price of the sixth one!