Bove: Fuld Has Three Days to Solve Lehman’s Problems

Richard Bove, an analyst at Ladenburg Thalmann & Co., talks about the possible sale of Lehman Brothers Holdings Inc. or some of its assets. Korea Development Bank said it’s "considering" an investment in the company and is "open" to an acquisition, according to a Reuters report. Lehman is the fourth-biggest U.S. securities firm.

click for video

00:00 Potential bidders for Lehman
01:24 Fuld has "run out of options."          
02:52 Potential share valuation in transaction

Running time 03:31

Bove Says Fuld Has Three Days to Solve Lehman’s Problems: Video
Aug. 22 (Bloomberg,  August 22, 2008 11:17 EDT

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What's been said:

Discussions found on the web:
  1. leftback commented on Aug 23

    Why three days? Is there some debt rollover due? Or have the Fed given an ultimatum?

  2. Winston Munn commented on Aug 23

    Selling insolvent U.S. assets to solvent foreign nations: the North Americian Firesale Takeover Agreement, better known as the new globalization.

  3. E commented on Aug 23

    So if we export assets that are negative in value, is that a good or bad thing for our trade deficit?

  4. Frank commented on Aug 23

    I’ll bet Dick Bove is happy he no longer works for a company with a name like Punk Ziegel…

  5. Michael commented on Aug 23

    Barry – The Korean Bank denied this yesterday am. Outright manipulation of the media / pump monkeys. These people aught to be in jail.

    It doesn’t matter as the markets are going to be sub 10K in a few months, just look at the anemic volume with friday’s giant “gains”. This burning house is going to get bulldozed regardless of the firefighting efforts to save it. Its much cheaper in the long run.

  6. Manhattanguy commented on Aug 23

    Who is going to pay $20 per share ($7 premium over yesterday’s closing price)? KDB can’t (and Korean regulators wouldn’t allow)..they already have exposure to subprime mortgages in UK, Singapore and Indonesia.

  7. i’m just saying commented on Aug 23

    To state the obvious and sound like a paranoid conspiracist, it’s awfully convenient that the KDB story broke (contradicting the earlier reports of LEH’s failure with KBD and CITIC on a deal) on a Friday morning when all the Koreans were going to bed and when volume would be light due to summer.

    Guess the truth will start coming out after Labor Day.

  8. Juhuti commented on Aug 23

    i’m just saying:

    That’s what I thought. KDB and CITIC walked away from the table because LEH offer was priced too high. So who changed the story to say that KDB was looking to purchase 50% of LEH?

  9. FedUpUsa commented on Aug 23

    Here’s the skinny, we’ve all been burned by blatant lies and rumors. The Lehman rumor today was the most obvious. What I’m proposing is a Tickerforum Class Action Fund. We all know that these asshats are not going to be prosecuted criminally, so what we need to do is hit them where it hurts.

    Here’s what we need.

    1) A Bright young Attorney looking to make a name for themselves.
    2) Cash to pay them while they’re hammering out multiple Class Action Lawsuits
    3) Documented Injured parties.

    I’m ponying up $100.00 this evening for it. That’s a lot for me right now, but this is something I believe in. I honestly believe this is the only way we can get the markets to a level playing field again.

    If anyone knows of an attorney or law student willing to get involved, please post. If you can provide a donation for the legal fund, that will work too.

    If we can make this work, we can make a difference.….

  10. me commented on Aug 23

    “Selling insolvent U.S. assets to solvent foreign nations:”

    You all heard what Buffet said about that yesterday. What are their last investments worth?

  11. Poppa Bear commented on Aug 23

    SKorea banks shelved bid for stake in Lehman: report –

    SEOUL (AFP) — South Korean banks led by Korea Development Bank (KDB) have shelved plans to buy a stake and management rights in Lehman Brothers due to concerns about its financial health, a report said Friday. Read more…

    Thats all you need to know. CNBC lied all day about a buyout when the truth was already out.

  12. Lee commented on Aug 23

    Potential Bidders for Lehman: 00.00
    Potential share valuation in transaction: $2.52

    That’s funny Barry.


    BR: Heh heh — thats minutes, not dollars — but I like the way you think!

  13. Joe Klein’s conscience commented on Aug 23

    CNBC lied all day about a buyout when the truth was already out.

    Say it ain’t so!! CNBC would never lie to us!!! Why would Bob Pisani lie to us? He’s such a fine, upstanding guy!!


  14. lunatic_fringe commented on Aug 23

    Come’n, who’s gonna pick up this piece of dog doodoo with billions in Level 3 and a buttload of Alt-A loans on the books for $20 a share?

    With every hedge fund or SWF that have tried the vulture role to date taking a sharp kick to the nuts, who’s gonna take a chance on Lehman when not only are residential assets still plummeting but the CRE collapse still is in the early stages.

    Ever since his “generational buy” call in financials earlier this year, Bove continues to cement in my mind that he’s lost it.

    Can we get some more Meredith Whitney please? She’s much easier on the eyes and makes sense to boot.

  15. Aristotle commented on Aug 23

    I’m sure the SEC will go after these rumor mongers…Oh wait that only applies to negative rumors.

  16. leftback commented on Aug 24

    I am shocked, shocked to learn that every word spoken on CNBC may not, after all, be true.

    Odds of LEH making it through the week now? 50:50? How will the Fed react?

    Maybe they won’t – it depends on the counter-parties. Maybe this one is too medium-sized to be saved.

  17. William Laird commented on Aug 24

    What is the deal with this story. I thought the Koreans – already said even early Friday that they had no interest in the deal due to solvency issues.

    Why does this turd of a story keep circling the bowl? By Tuesday, it will be flushed down for good. Bears will rule!

  18. mike owens commented on Sep 27

    Lehman can not be trusted even the subsidiarys, their Capital Crossing bunch in Boston bought my loan from a local bank.
    I sold a property for $300,00.00 and gave all of the proceeds to my local bank,it was supposed to pay down some of the loan and make sure everything was up to date on payments after repeatedly telling me not to make anymore payments, we would be closing soon. I did what was asked and could not get any info about the loans until Capital Crooks Crossing purchased the loans. This occured in Oct 2006, the next contact with anyone was in jan-feb 2007. My local bank said they could not discuss my loans with me and we spent the next several months searching for my loans.My local bank assured me we were paid through jan 2007. The first contact with Capital Crooks was ,
    they wanted close to $200,000.00 to avoid foreclosure.We told them about the local banks claims and they ignored it and proceeded with attemted foreclosure. The local bank employees repeatedly told me we were correct but they could not say anything because the hierarchy told them they could no longer discuss anything with me. Our contact at Capital Crooks Crossing was Dennis Stratford and now he is absolutely a liar. He claims to the Treasury Department that we would not cooperate, he would not listen to our claims and I ended up filing bankrupcy. They are now attempting to default me and take my family owned since 1968 business. I can keep the payments made but Capital Crooks Crossing has changed lawyers at least 3 or 4 times. My attorney fees and administrative cost to the courts along with cpa fees has probably exceeded $100,000.00, and they will not let us finalize the filing because every time they change attorneys we experience another round of bullcrap. I hope all the bastards involved in this conspiracy lose their jobs and jump off a tall building and their families have to endure the pressure and uncertainty my family has for the last 2 years. If anyone that reads this can help please

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