With speculation rife that Lehman Brothers will post a quarterly loss and seek out additional capital, the situation for the smallest of the four major investment banks is looking grim. The vultures are circling, the bad news continues on housing, and, with no real easing of the credit crunch, Lehman is in trouble.
Is Lehman the next Bear Stearns? Or will it be UBS?
One thing is for sure, the talk that the worst is over is premature.
Update (June 9): Lehman lost $2.8 billion and is going to raise $6 billion in a stocking offering. Besides the obvious reasons, here’s why that’s really bad news for Lehman.