Greenlight puts the Red Light on Financials: Lehman Brothers (LEH), Moody’s (MCO), Financial Select SPDR (XLF)

David Einhorn, president of Greenlight Capital, says LEH has not written down enough bad mortgages and says the company should raise capital. Greenlight is short LEH. XLF tumbled 7% on suspicions raised by Einhorn. Najarian thinks unusual put options activity in LEH, 4X more than normal, is similar to what he saw in Bear Stearns before the fire sale. Tim Seymour recommends caution and Macke says the whole group is scary, especially Moody’s admitted it had mispriced a large segment of the debt market.