Einhorn Insists Lehman Needs More New Capital

May 29 2008 | 2:00am ET

Hedge fund manager David Einhorn took his “campaign” against Lehman Brothers to the airwaves yesterday, arguing that the Wall Street giant needs even more new capital.

Einhorn, whose Greenlight Capital is shorting Lehman stock, warned that “we are nowhere near the end” of Lehman’s writedowns and losses.

“Lehman is undercapitalized,” he said on Bloomberg Television. “They continued doubling down as the credit crisis evolved.”

“It’s essential, from a public interest, that these investment banks de-lever in a very material way,” Einhorn added. “That will require raising significant amounts of capital.”

Einhorn has berated Lehman of late, accusing the firm of hiding $6.5 billion in collateralized debt obligations and insisting that the bank remains in trouble. For its part, Lehman dismisses Einhorn’s comments as self-interested and baseless.

“Mr. Einhorn cherry-picks certain specific items from our 10-Q and takes them out of context and distorts them to relay a false impression of the firm’s financial condition, which suits him because of his short position in our stock,” Lehman said. “He also makes allegations that have no basis in fact with the same hope of achieving personal gain.”


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.