Lehman Trouble: Einhorn Called It

Last month, TheStreet.com TV's Gregg Greenberg interviewed David Einhorn, founder and president of Greenlight Capital (GLRE Quote), about his new book Fooling Some of the People All of the Time.

In light of this week's news that Lehman Brothers (LEH Quote) plans to raise up to $4 billion in capital and is set to report its first quarterly loss in its history, here is a recap of Einhorn's interview, when asked about his current short positions.

From "David Einhorn Shows His Hand" on TheStreet.com TV:

Greenberg: "Aside from Allied (ALD Quote), what are you shorting right now?"

Einhorn: "Well, we're still short a bunch of the credit-sensitive financials. Most particularly, Lehman. Also, some of the larger money center banks and regional banks. We're short some of the credit agencies. And were short a bunch of companies that are trading at reasonably aggressive multiples of forecasts that assume a second-half [of 2008] recovery, which we're not so sure whether it will appear."

To watch the full interview, click the video player below:

In the video, Greenberg reported that Einhorn's "battle with Lehman heightened to a new level" when he "directly attacked Lehman's CFO Erin Callan, arguably the most powerful woman on Wall Street."

To hear more from Einhorn, check out "Open Book: Einhorn on Short-Selling."