Lehman Brothers simply cannot catch a break. The latest blow, as the firm explores all avenues to shore up capital, is the sudden demise of the Ospraie Fund, managed by the company in which Lehman took a 20 per cent stake in April 2005. Wall Street banks let their shopaholic tendencies run amok in the hedge fund heyday, as they scrambled to buy into the bulging returns produced by star managers – in this case, commodities trader Dwight Anderson.

Investment genius, though, has a short shelf-life in these markets. A sharp reversal in commodities and resource stocks left the $3bn flagship fund down 27 per cent in August and almost 40 per cent for the year, meaning investors had the right to break lock-up provisions and withdraw funds. It will now be wound down, leaving some $4bn managed by Ospraie’s remaining funds.