Bove: WaMu a Bigger Problem Than Lehman For Regulators
Dick Bove's latest comments indicate he is standing by Lehman Brothers (LEH-NYSE), but is not quite as constructive on Washington Mutual (WM-NYSE).
Shame on me for thinking Dick Fuld would actually do something that made sense; this conflagration has claimed pretty much everyone on the SellSide as well, but Bove has essentially stuck to his guns throughout the drama...
Bove made a pit stop at Fox Business to get his last licks in on Lehman and WaMu:
On if a deal will happen for Lehman:
“I think that there will be a deal and I think that the Treasury’s very interested in seeing that a deal occurs because if there is no deal and if Lehman has to come back to the market on Monday and Tuesday…then Lehman will be in deep trouble and the Treasury will have to step in.”
On whether their will be a joint bid for Lehman or one bank stepping in:
“I actually think that one big bank will do it and I do believe that you change the whole economics of running Lehman if a big bank acquires it.”
On Washington Mutual’s situation as opposed to Lehman Brothers:
“I have a different opinion on Washington Mutual. I actually think that Lehman is a very good company and I think it has a lot of quality assets. WaMu does not. This is one that I think the U.S. Treasury is going to have to get involved in. I think there’s going to have to be an assisted merger, and I think the Treasury is going to have to come up with money on this one.”
Perhaps Bove spoke before Hank Paulson’s recent protestations and the FT’s update; he seems to be taking a different tack with Lehman and not buying into the WaMu rumors.. It is tough to find any winners in any of this...this has not been the finest moment for David Trone, Dick Fuld and Dick Bove et al.
Ken Lewis might need the weekend to pull his 3-way deal together...good luck herding those cats, Ken.
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Herbert Lehman (1878-1963)
My name has been on buildings for 8 generations.....
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Bove: Bank Of America Will Win Lehman Auction
Fox Business
Video Update from FT
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