Mr. Mortgage: Lehman Watch…Barclays and BofA Drop Out

Why would these 10 banks spend $3bb that they don’t have when they still have a massive mark coming when the deal goes down at 35 cents? Why burn shareholder money in a barrel and allow a competitor to scoop up LEH and compete with you? If I am GS I am thinking, lets let Lehman go BK. Even if my (GS) stock falls 30% I am still alive and over next 10 years I have one less competitor.

Also see this piece from Bloomberg: Bank of America Said to Walk Away From Lehman Talks.