Greenlight vs. Lehman Brothers

June 4th, 2008
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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.
For Detailed Investor Profiles on these Investors, click below:
Greenlight Capital
Related People: Bruce Gutkin; David Einhorn; Harry Brandler; James Lin; Jeffrey A. Keswin*; Nelson Heumann; Vinit Sethi
Related Entities: DME Advisors LP; Greenlight Capital Inc; Greenlight Masters LLC; Greenlight Private Equity Partners


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