Ok, this is a perfect example of capitalism run amok. Reward with risk. Profit without loss. Here we have lehman Bros. putting itself up for sale and there are possible buyers. But Lehman has some bad debt. So….buyers that are worried about the trouble assets want the taxpayer to foot the bill on any further looses they run into as a result of the purchase. Their kind words are "ask the gov’t to help backstop any future losses". What that means is if anything else goes under at Lehman after we purchase them, you cover it, no risk on our part. So what if Lehman goes under A lot of rich people loose some money. It’s not as though the money is really lost in the market, it just changed hands from person to another and someone got stuck with a hot potato(e).
Heck, for that matter, maybe I should jum in and make a bid for Lehman. I don’t have to worry about any losses adn I can probably get the gov’t to fund the purchase too. What a deal.
Lehman for sale in rush to try to salvage struggling firm – MarketWatch Lehman (LEH: Lehman Brothers Holdings Inc News, chart, profile, more Last: 4.22-3.03-41.79% 4:01pm 09/11/2008 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: LEH 4.22, -3.03, -41.8%) has put itself up for sale and has been calling rival banks, brokerage firms and other potential acquirers, according to three people familiar with the situation. Suitors include Bank of America (BAC: bank of america corporation com News, chart, profile, more Last: 33.06 0.68 2.10% 4:03pm 09/11/2008 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: BAC 33.06, 0.68, 2.1%) , The Wall Street Journal reported, citing unidentified people familiar with the matter. Spokesmen at Lehman and Bank of America declined to comment. The Treasury Department and the Federal Reserve are helping with the sale, the Washington Post reported, citing sources familiar with the matter. Nothing is finalized and there are several potential outcomes, but a deal is expected to be unveiled this weekend before Asian markets open Monday morning, the newspaper added. Potential buyers remain wary about troubled assets on Lehman’s balance sheet and are increasingly looking to the U.S. government to help backstop any future losses, the Journal said.