Lehman Brothers dropped 44% today closing around $8. Apparently the deal with the South Korean bank fell through. LEH has moved their release of quarterly financial information up by a week. Tomorrow morning at 7:30 EDT we will learn their plan.
This blog has been all over the LEH blow up since at least last March, check out the archives for March.
We highlighted the interview between maria Bartiromo and the LEH CFO, Erin Hollin. Hollin was removed as CFO for not creating more confidence in LEH, she subsequently left the firm.
LEH is the fourth largest brokerage firm in the US. They have too many questionable mortgage investments. Will the FED save LEH? I doubt it but again who are their auditors? Will they have some culpability?
Go to http://www.stockcharts.com and put LEH in to examine the chart of this stock. Surf the finance.yahoo site I linked to learn more. Remember that such firms only have 3% capital, it does not take many bad investments to wipe that out. Can you find the LEH website? What do they say about themselves? This is a very interesting time to study accounting, make the most of it!
Once again the blog has tracked the business news you need to know, stay tuned.
Professor Elam 
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