"Their balance sheet can take a shock much better than Countrywide, " said CreditSights senior analyst David Hendler.
Hendler calls Wall Street a bunch of enablers for allowing the situation to progress to such a crisis.
Morgan Stanley and JPMorgan are hiring brokers for their private client divisions, for example, notes CreditSights analyst David Hendler.
David Hendler, an analyst at CreditSights, says the investment will at least forestall a ratings agency downgrade of WaMu.
Lehman's debt would also have to be split among the good and bad banks, says CreditSights Analyst David Hendler.
"Who's going to want to put money into brokers if it gets put into a bad bank, " Hendler said Sunday.
Analyst David Hendler of CreditSights says Citi still needs to upgrade systems that date from that period, but somehow never got any attention.
Lehman Brothers could lose as much as 12.6% of its 2007 earnings per share for its exposure, according to Hendler's calculations.
"We still believe the company's leading platforms for both mortgage servicing and origination represent an attractive takeover play, " says CreditSights' David Hendler.
Bear Stearns has the most exposure to the beleaguered subprime mortgage sector according to those criteria, said CreditSights analyst David Hendler in a research note Monday.
"We sense that the supervisory authorities want this negative capital markets noise from Lehman Brothers to be dialed down, " said David Hendler, an analyst at CreditSights.
CreditSights' Hendler envisions a sale of WaMu as the most likely outcome for the private equity investors, who will inevitably want to cash out their investment.
If mortgage losses go beyond already gloomy predictions, "they could succumb to more capital pressure, and their independent-company days may be numbered, " says David Hendler, an analyst at CreditSights.
The consequences of this, as Hendler sees it, are less access to credit and services for the middle class while more resources and capital are devoted to businesses the banks see as higher growth.
Citigroup, which bought ABN's mortgage business earlier this year, could step in with a bid, according to analyst David Hendler of CreditSights, as could JPMorgan (though it would likely have to shed deposits if it did buy LaSalle).
Citigroup (nyse: C - news - people ), which bought ABN's mortgage business earlier this year, could step in with a bid, according to analyst David Hendler of CreditSights, as could JPMorgan (though it would likely have to shed deposits if it did buy LaSalle).
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