Warren Buffet's Lehman Analysis

My second post related to Buffet, this one looked interesting. During height if panic, Lehman team approached Buffet requesting investment in their company. Buffet asked Lehman's management team to invest in Lehman along side with him (or should I say, asked to eat their own cooking?).

Lehman CEO Richard Fuld called Buffett on March 28, 2008 to discuss the possibility of Buffett "investing at least $2 billion in Lehman."

"Two items immediately concerned Buffett during his (March 28) conversation with Fuld."

First, "Buffett took it as a negative that Fuld suggested that Lehman executives were not willing to participate in a significant way" by investing in the firm under the same term.

Second, Buffett thought Fuld's complaints about short sellers indicated a "failure to admit one's own problems."

Complete news and actual report from court-appointed Lehman bankruptcy examiner Mr. Anton Valukas is available here.