Several media outlets reported that Lehman Brothers (NYSE: LEH) will fire between 1,200 and 1,500 people, about 6% of its work force. This is not enough to have a significant impact on the firm's financials. Lehman would probably have to let 50% of its people go for that to happen.

Referring to Lehman's problems, Reuters writes: "Investors fear that write-downs of its commercial and residential mortgage assets could be large enough to dramatically reduce the company's net worth, which stood at about $26.3 billion at the end of May."

Lehman indeed faces more write-offs, probably for the next few quarters. The value of its commercial loan portfolio is almost certain to decrease by several billion dollars. It could try to sell those loans or its Neuberger Berman asset management arm, but so far nothing of the sort has happened.

What Lehman investors don't want to admit is that the value of their common shares is likely to be wiped out. The company's stock has been as low as $12, which put its market cap under $10 billion. If it has to raise another $10 billion at below market prices, the price of shares could drop below $5.

Lehman may have no good options because it really has no options at all.

Douglas A. McIntyre is an editor at 24/7 Wall St.