Lehman Brothers has finally raised enough money to stop its stock decline, but the firm now faces an ugly reality: Its earnings power has been crippled. Likely fix? Thousands of firings and/or a sale to another firm.
Clusterstock: Lehman (LEH) CEO Dick Fuld did what he had to to on the company conference call on Monday: Appear, take responsibility, show that he has a firm hand on the tiller. Alas, the rocks he’s driven Lehman onto have torn a massive gash in the hull, and the only salvation may be big cost cuts or a sale to a larger firm.
CNBC’s Charlie Gasparino reports:
AS DISCONTENT GROWS INSIDE OF LEHMAN BROTHERS OVER THE FIRM’S FINANCIAL PROBLEMS, PRESSURE IS BUILDING ON CEO DICK FULD TO SELL THE SECURITIES FIRM TO A BIGGER PLAYER, CNBC HAS LEARNED.
INSIDE LEHMAN, EXECUTIVES ARE CONCEDING THAT UNLESS BUSINESS CONDITIONS RADICALLY IMPROVE –AND ALL SIGNS POINT TO THE OPPOSITE– OR THE FIRM IS SOLD TO A LARGER PLAYER, LEHMAN MAY HAVE MAKE LARGE CUTS TO ITS WORKFORCE OF 26,189. ALREADY FEAR IS SPREADING THROUGH THE SENIOR RANKS OF THE INVESTMENT BANK: WORRIED BANKERS AND TRADERS HAVE RECENTLY BEEN MAKING FRANTIC CALLS TO BETTER capitalised BANKS, LIKE CREDIT SUISSE AND OTHERS IN HOPES OF LANDING JOBS BEFORE THE CUTS COME.
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