Blogs & Comment

Lehman: how times have changed

So much bad news in the subprime story in the United States that it’s hard to keep track of the players. But the continuing selloff in Lehman Bros. reminded me of some rather positive news stories on the century-plus-old NY investment bank not that long ago in real timethough it seems forever given all that’s happened this year in financial services.
Two favourites: onefrom March 2007 about how Lehman saw opportunity in the subprime meltdown, and anotherfrom December ’07, in which Lehman “escapes subprime fallout.” The latter includes this keeper quote from Chris O’Meara, Lehman’s head of global risk management: “We believe we have done a good job of managing our risks.”
As I write (near 3 pm on Sept. 11), Lehman stock (NYSE: LEH) is trading at US$4.39. Down $2.86 on the day. Down 68.4% over 12 months. Toxic real estate investments strike again.