Lehman Crashing Again - down 45% this morning

Lehman Risk Jumps as Default Swap Traders Demand Upfront Fees - Contracts protecting $10 million of Lehman debt for one year cost 13 percent upfront and 5 percent a year, according to CMA prices at 9:50 a.m. in New York.

Lehman End Imminent - I heard the rumour from two sources that Lehman is in its final day or two and Goldman is willing to buy the firm, and the second source, who volunteered the information, is sufficiently well plugged in that I trust the reading. This came from a former senior employee:

A couple friends of mine from LEH trading desk called me this a.m. to say that mgmt has taken employees aside to let them know that the end should come in next 24-48 hours. Ratings agencies apparently told them that the steps were not sufficient to prevent a d/g, and LEH mgmt asked them to hold off for a day or so to give them a chance to resolve situation (with sale of company). Apparently GS is willing buyer, but is buyer of last resort from LEH's perspective, b/c they would keep very few LEH employees.

Maybe we'll have another Sunday afternoon announcement this weekend. Or sooner.