Equity markets took off in the last 30 minutes of trading as the Wall Street Journal reportedly released a story that "Bank of America is in talks to buy Lehman Brothers citing a source" according to Bloomberg network news which was flashing the story prominently as US markets were closing.
They are back-tracking a bit now, after hours, as cooler heads prevail no doubt, but this is getting a little embarrassing.
We do not know if this is the real deal, just another Lehman leak, or if Bank of America is merely participating in the ongoing negotiations to buy Neuberger Berman which are not expected to close until October.
Is Bank of America the stand-in for the Korean Development Bank? Is The Wall Street Journal a serious business news source or the Chosun Ilbo? Is the attention to serious reporting on Bloomberg getting as lax as it appears in the last few weeks?
There were quieter rumours circulating that HSBC was going to put in a bid overnight, after Goldman Sachs denied rumours that they were going to bid.
Does Lehman see a marriage ring every time someone takes their phone call?
We understand that there are quite a few funds holding the common shares and preferred debt heavily, but this may be getting a little out of hand. That ramp up of the financials ahead of the leak was rather heavy handed.
More to follow as it comes out, but for now as always, more questions than facts. At some point the rumours may be true, but the deterioration in standards of transparency and honesty in our financial system is odious, and the decay of the notion of stewardship in general in the U.S. is becoming appalling.
After the close:
Reuters
Lehman looking for buyers for entire bank: source
Thursday September 11, 4:56 pm ET
NEW YORK (Reuters) - Lehman Brothers Holdings Inc is in talks with potential buyers to sell itself, a source briefed on the matter said. (That has been the case for the better part of this year. This is not news - Jesse)
A few banks are looking at books that went out Thursday, the source said, declining to identify any potential acquirers. (Every serious bidder that has looked at the books so far has run away, or put in a lowball bid. This deal is going to take a backstop from the Fed, a greater fool, or a miracle. - Jesse)
The Wall Street Journal reported that Bank of America was in talks to buy Lehman but that any deal was "far from certain." (This is not how Bloomberg released the news into the market close. They made it appear like a breaking news story which was a seriously disappointing lapse in standards. - Jesse)
The investment bank's survival was called into question as its chief executive scrambled to sell assets to cover losses from toxic real estate investments, sending shares down as much as 46 percent.
