this article leaves more questions than it answers. how does the author know the contents of an "investment plan" that was on the CEOs desk? where does the 3% number come from that is the bulk of the assumptions about the housing market.. and more than a few others..

even worse though, its flat out wrong in other areas.. lehman absolutely knew the risk of its CDOs and in fact was trying to offload them as quickly as possible. in contrast to goldman, lehman was famous for making money packaging and selling its bonds on a fee based model. whereas goldman's model relied more on proprietary trading - actually making bets on the direction of bond moves, lehman would theoretically be profitable regardless because they were making fees from the beneficiary of the bond and taking a cut from placing the bond with customers. the problem that killed them was the turnaround time from when lehman received the assets and "commission" to create the bond and when they could offload it to customers. during this time the bond was actually on lehman's books. basically, wall street caught lehman holding a bad hand of these bonds before they could unload them to the rest of wall street. rumors were started just like they were for bear sterns and financing got pulled like a house of cards..