I would love to be able to dismiss out of hand the various rumors that have been circulating about Lehman Brothers (LEH) over the course of the past few weeks. The fact is that Lehman seems to be unable to escape the Pig-Penesque cloud that has hung over the stock since the demise of Bear Stearns.
Lehman Brothers is down another 3% to 35.59 as I write this, with the prospect of another test of last week’s 35.00 support level coming soon. If 35.00 fails to contain the current round of selling, this could get ugly quickly and raise more questions about counterparty risk. I don’t like the looks of the LEH chart; clearly they are a long way from being out of the woods.