| Greenlight Capital Management, the activist hedge fund run by David
Einhorn, has targeted Lehman Brothers in an effort to drive down the
investment bank's stock price. Mr. Einhorn believes that Lehman, will
soon follow in the same footsteps as Bear Stearns in the coming weeks.
He has been urging investors to short the Lehman stock, and despite
CFO, Erin Callan's assurance that everything is on track, the stock
price continues to fall. Lehman claims that it has more than enough
liquidity despite massive right offs. Mr. Einhorn has been hinting
that Lehmans had received a cash injection from the FED after the Bear
Stearns debacle. His justification for targeting Lehman Brothers is
that they suffered huge losses in the mortgage crisis and have been
less than upfront about their assets and their risk management
procedures, much less than their investment banking counter parts. |
