The End of Lehman

Why the defenestrations at Lehman? There’s one reason, and one reason only: the share price, which was meant to go up, instead went down. And frankly the only reason Fuld himself still has his job is that he is also chairman of a rather supine board.

But did the stock crater by 13% yesterday on rumors that Callan and Gregory were getting pushed out, or did they get pushed out because Wednesday’s fall was the last straw? My feeling was that it’s a little of both: a vicious spiral. And that the stock’s going to continue to fall unless and until a white knight gallops in to save the day. If Fuld isn’t actively shopping his bank to all comers, the board should fire him and replace him with someone who will.

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