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Live Blogging CNBC Lehman Show

Posted By Barry Ritholtz On September 14, 2008 @ 8:57 pm In Bailouts,Corporate Management,Federal Reserve,Financial Press | Comments Disabled

click for updated futuresFutes [1]

Dow Futures [1] down 294; SPX Futes off 37; Nasdaq off 41; Weak, and heading back towards the lows.

>

I have a busy day tomorrow, and I am toast. OPEN THREAD IN COMMENTS (play nice)

That’s all she wrote!

~~~

Don Drapkin of Lazard states two things: "The Merrill Lynch deal is terrific for the market, and comes out in favor of the short selling rule, blasts ending the uptick rule." Dylan asks him about leverage, and he says "We have a sound financial system."

Wow, totally empty apohorisms, zeroi value added. Thanks for nothing, Don. 

~~~

Gasparino redeems himself, discusses Fuld’s (now obviously) false statements, saying Lehman’s capital is sufficient

~~~

Maria Bartiroma says Paulson did not pressure MER into a sale; Merrill BoD voted unanimously for the deal. Maria says AIG and LEH frightened MER into selling itself tonite; Private Wealth Business retains the Merrill Lynch name.

Maria says there was a heavy short interest in MER at $15, but that makes no sense to me

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Vince Farrell is accentuating the positive [2]

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Federal Reserve Board announces several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities [3]

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Still waiting for a Treasury Press Release;

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SEC: Statement Regarding Recent Market Events and Lehman Brothers [4]   

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Fox, meet henhouse: Dylan Ratigan essentially calls Harvey Pitt a corporate tool. Pitt, who actually is a corporate tool, fails to acknowledge the slur. Back when Harvey Pitt was SEC chair, he said the markets were a better regulator of companies than the SEC. For a smart guy, he is a total idiot.

Pitt is discussing competition.

~~~

Understated headline of the night: Financial-Sector Distress Likely to Hold Back Stocks [5] (WSJ)

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David Kotok says "Look out below."

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Lehman Said to Prepare Bankruptcy as Buyers Withdraw [6] (Bloomberg)

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Nouriel Roubini says all independent B/Ds are toast, they are highly leveraged, and their business model is fundamentally flawed. Financials facing a "disaster"; bankruptcies, Broker-dealers "are going to disappear."
Its a fundamental, radical change on Wall Street. Expects WaMu to go under, says AIG is in trouble.

~~~

Gold rallies (Up $21, but it was much higher before)

~~~

AIG CEO turned down PE money, and turns to the Fed. (The currently cannot tap the Fed). AIG Scrambles to Raise Cash, Talks to Fed [7]   

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U.S. Opts to Avoid Lehman Rescue [8]

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CNBC reports that the Fed told Merrill Lynch to "Sell it self" and MER has been shopping itself for a few days.

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FT: Hubris – is thy name Richard Fuld? [9]   

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Oil is under $100; trading at 99 change.

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Fed Plans Expanded Lending Facilities [10] 

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WSJ [11] reporting Bank America/Merrill deal is done at roughly $44 billion.

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The Lehman panel itself is an incompetent parade of horribles, and none of them have any business being there. Harvey "make the SEC toothless" Pitt, Bill "thanks-for-the-bailout" Gross, and Charlies "Dick-Fuld-is-AWESOME" Gasparino.

Love it that they brought on Bill Gross and Harvey
Pitt to discuss LEH — the irony’s exquisite. Not to mention Gasparino,
but that’s just icing on the cake.  (I contacted CNBC earlier and
offered my services)

~~~

Vince Farrell says Bank of America is not stupid.
He’s wrong, their management has made some rather stupid moves — how
about their purchase of Countrywide? That was $4 billion worth of dumb.

~~~

Special Fed rules for taking even junkier paper;
Cramer talking up Nasdaq, and he is a buyer not a seller. Harvey Pitt
blames short seller. He is as clueless a pundit as he was a SEC Chair.

~~~

CNBC Live show with Dylan Ratigan is now beginning.


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2008/09/live-blogging-cnbc-lehman-show/

URLs in this post:

[1] Image: http://www.bloomberg.com/markets/stocks/futures.html

[2] accentuating the positive: http://www.mathematik.uni-ulm.de/paul/lyrics/bingcrosby/accent~1.html

[3] Federal Reserve Board announces several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities: http://federalreserve.gov/newsevents/press/monetary/20080914a.htm

[4] Statement Regarding Recent Market Events and Lehman Brothers: http://sec.gov/news/press/2008/2008-197.htm

[5] Financial-Sector Distress Likely to Hold Back Stocks: http://online.wsj.com/article/SB122142618132133687.html

[6] Lehman Said to Prepare Bankruptcy as Buyers Withdraw: http://www.bloomberg.com/apps/news?pid=20601087&sid=axH8rBjWeJNc&

[7] AIG Scrambles to Raise Cash, Talks to Fed: http://online.wsj.com/article/SB122142474136033581.html

[8] U.S. Opts to Avoid Lehman Rescue: http://www.ritholtz.com/blog http://online.wsj.com/article/SB122139688846233147.html

[9] Hubris – is thy name Richard Fuld?: http://www.ft.com/cms/s/0/6168c7f6-828e-11dd-a019-000077b07658.html

[10] Fed Plans Expanded Lending Facilities: http://online.wsj.com/article/SB122143939332934501.html

[11] WSJ: http://online.wsj.com/article/SB122142278543033525.html

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