Mar

18

Bear Raid, from East Sider

March 18, 2008 |

08:41 LEH Lehman Brothers: Wall Street rallies to aid Lehman

Daily Telegraph reports Wall Street's leading investment banks have rallied around the co after the Federal Reserve Bank of New York urged them to support the institution in order to try and preserve financial stability. It is understood the New York Fed contacted key executives at a number of leading banks, including GS, C and MS, to discuss Lehman's situation over the weekend. By yesterday morning, the banks' prime brokerage departments - which service hedge fund clients - were under strict instructions not to do or say anything in the market that could damage Lehman. It is believed that bankers were told not to solicit Lehman's clients for business or to give the impression the bank is uncreditworthy.

Recall Bear hubristically refused to help bail out LTCM during the storied meeting at the NY Fed. Small wonder the same NY Fed did not call around urging the Street not to solicit Bear's clients when it was mortally wounded.

I recall in the aftermath of LTCM, the dark mutterings about how revenge would be taken on Bear, and how memories are very very long.


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  1. Curmudgeon 3417 on March 18, 2008 1:13 pm

    You are absolutely right about the LTCM events. I read at the time that MER head Komansky said "What the f___ are you doing, Jimmy!?" when Cayne was the only one to refuse to participate in the consortium, and that he and other  participants were irked at BSC's decision for a long time.

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