LEH

LEH, bsc, c, lehman, lehman brothers, bac

What can be said about JPM buying for BSC for just $2 per share. After hearing the news over the weekend it's certain most people thought it was a typo..."it HAS to be $20 per share right?" But after the news sank in, and you lifted your jaw off the ground, as an active trader/investor your next question had to be "who's next?"

LEH seems to be the popular target this morning on the news networks (and they should definitely be near the top of anyones list) but don't forget MS. That company has done all it could to keep itself out of the news. But for those of you who read this Technical Insights Blog, you know they have very serious problems that need to be addressed.

Here is an excerpt about level3 debt from this blogs posting from February 28th titled Weathering the credit storm with Merrill Lynch...

According to the latest statistics, MS has 250% of their equity in level 3 debt, GS 180%, LEH 160%, C 100%, while MER has only 38% of their equity in level 3 debt. Can you imagine 250%, 180%, or even 100% of your equity in an unpriced debt??? THAT IS INSANITY!

So along with LEH and the rest of the brokerage stocks, keep an eye very closely on MS. MS is only down 10% pre opening while LEH is down approximately 30% pre opening, and MS very well may be the next shoe to drop

Sovereign Funds Run And Hide (C)(JPM)(BSC)(MER)(LEH)(WM)

Just a few months ago, sovereign funds could not get enough stock and debt in financial firms like Citigroup (NYSE: C) and Merrill Lynch (NYSE: MER).

When the time came to bail-out Bear Stearns (NYSE: BSC) or put money up to finance a buy-out deal for the brokerage by JP Morgan (NYSE: JPM), the sovereigns were out of sight.

Several other financial companies may need capital quickly. At the top of that list is Lehman Brothers (NYSE: LEH). Washington Mutual (NYSE: WM) may need assistance, too.

It no longer matters if sovereign funds have a political agenda for their investments. They have left the building. The Fed is, in effect, alone. It political agenda is to save the economy starting with Wall St.