Bankrupt Lehman Stock Booms in Long-Shot Trading

Bankrupt company jumps sixfold in 'lottery ticket' deals
By Jason Farago,  Newser Staff
Posted Sep 7, 2009 7:36 AM CDT
Bankrupt Lehman Stock Booms in Long-Shot Trading
Lehman Brothers headquarters on Sept. 15, 2008, when the 158-year-old investment bank filed for Chapter 11 protection in the biggest bankruptcy filing ever.    (AP Photo/Mark Lennihan, file)

Here's a stock tip for you: Lehman Brothers. No, really—the busted financial giant, which had been trading at less than 5 cents a share, peaked at 32 cents last week, with volume hitting 100 million shares in late August after sitting at virtually zero most of the year. The trading, which is taking place privately rather than on a registered exchange, is little more than "tulip mania," one hedge fund manager said. "People have decided it's worth something based on nothing."

Other bankrupted companies, including WaMu and IndyMac, have boomed in recent days as well, reports the Financial Times. "People lost so much money last year, and they are so desperate to recoup their losses, that they are willing to invest in anything," said one investor. "Everyone wants a lottery ticket." (More Lehman Brothers stories.)

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