Is Lehman Bros. done???
 

The Fed is trying to find a buyer and/or financing for Lehman bros. so they do not fold.

http://news.yahoo.com/s/ap/20080913/...ehman_brothers

Interesting.....

hopefully someone buys them soon or there will be even worse trouble

They need to resolve it today or tomorrow. This is from the article -

Their stock has gone from $65.44 on Jan. 1, 2008 to $3.59 on Friday.

What are the odds that the government bails them out with our tax dollars? Seems to be the trend these days.

they dont have the cash to keep bailing out...

there are over 700 banks on the critical list..

wamu is under conservatorship from what i have heard, but the govt wont admit to that because it would cause panic in the market..

the whole US financial system is on the verge of collapse...

hopefully the feds will figure out some way to get out of this mess...

Pretty much.

I blame experian

I would like to see the salaries and bonuses from every executive over the last few years seized.

WAMU is next and the Fed is to blame as bernake is a fucking idiot

Rich mans welfare.

I blame Bush...Bank deregulation is good:1orglaugh:1orglaugh:1orglaugh

bailing out these scumbags is fine but affordable health insurance for everyone is socialism. Hmmm

Lehman, is different from the rest of the street. The staff owns 25% of the company currently, they used to own 30%. They were given raises, with stock options that mature after five years. The lowly secreatary was given stock, everyone who worked for Lehman owned stocked.

While everyone who works for Lehman is poorer the top dogs, will still walk out with 6 million plus.

gm and ford want low cost federal loans
http://www.marketwatch.com/news/story/potential-federal-loans-buoys-gm/story.aspx?guid={523591FB-7302-4410-8064-54C5EED55B06}&dist=msr_1

Man since its been a little slow in adult can we get a hand out too? lol

Interesting, thanks .....

United States of socialism :)

this is just the tip of the iceburg...


US financial system is in a huge trouble...
beyond what words can describe.

All markets for any paper with any risk is completely at a halt.


we're in for a show folks! many of these big wallstreet firms have direct systematic risk to the american financial system.... fall of a big one is going to trigger a major domino effect ... Citigroup right now is holding over a trillion dollars of derivatives that are mark to model.. when those come onto the balance sheet and become mark to market... all hell is going to break loose.


giddyup

And the bailouts are strictly because of the fact that these firms oppose direct threat to the solvency of the american financial system if they go down.

i have been saying this for months... :2 cents:

"Citigroup Inc.'s Vikram Pandit, JPMorgan Chase & Co.'s Jamie Dimon, Morgan Stanley's John Mack, Goldman Sachs Group Inc.'s Lloyd Blankfein, and Merrill Lynch & Co.'s John Thain were among the chief executives at the meeting."

Offcourse they are; did most of them not found the Federal Reserve bank one day when nobody was paying attention and passed the legislation to do so.

700 banks!?!?!?!?!?!

Where did you get that figure? You got a link?

Here is the latest, not sure if this sounds good or not. Glad the Fed is saying they won't step in and guarantee bad debt, but you have to wonder if they'll change that stance if no deal can get done in time.

http://www.cnbc.com/id/26691041

If someone doesn't step in...
when they start unwinding positions in a chapter 11 or in Lehmans case most likely it would be a chapter 7 bankruptcy ...

nearly 100 billion dollars of Toxic paper at Lehman alone is going to flood the markets.. and its going to cause other banks worldwide holding the same type of toxic paper start having to right down billions upon billions of dollars ... causing many to go insolvent.



Never mind all the credit default swaps that were written to hedge alot of the lehman debt...


On top of this now defaults in Prime mortgages are at a rise.. and alt a mortgages are reseting... with 6.1% unemployment rate and getting worse... I think over the next few years we'r going to be seeing the 10%+ interest rates of the late 80s... as inflation sky rockets!


The situation is so severe out there right now its compareable to the Great Depression...Remind you wallstreet is always predicting whats to go down in the economy 6 - 9 months ahead... and it hasn't even gotten that bad yet in the street...

interesting read

Nice posts Sami in particular.

Caput... it's over

Its pretty crazy to see banks going under when just a year or two ago they were all announcing billion dollar profits.

the market and these financial stocks have definitely taken a hit, especially the ones with poor debt like LEH and WM. The writing is on the wall and a lot of their market cap is already given up. However, people forget how interwoven the economy of the world is, and now will begin a global economic downturn. If the USA economy sneezes, the whole world catches a cold. I don't think inflation is going to get out of hand, but I do see the Dow dipping below 10,000 virtually giving up all the gains of the last bull market. We're already 3 years into a downturn, and we need home prices to stabilize before it will get better. A lot of these financial stocks going down I think are limited to the financial sector, however the system will take a hit and it will in turn affect everyone else. I see it getting worst, but all that means to me is the people who are heavy on cash can make a killing in the long term with all the opportunities abound.

Session called for Credit default swaps ... after Barclays backs out of a take over deal.


Looks like Lehman Brothers is gone.

RIP 158 years in business... down the toilet.

says who? Are all the trees gone?

I do hope you are wrong Sami, but suspect you are right...

The bank will Fuld, errrr Fold....... what a dick.

Lehman to file Bankruptcy sometime tonight.


If the Bank of America and Merrill deal doesn't work out.. Merrill Lynch is up next in line within 48 - 72 hours would be my estimate!

We need less lawyers/bankers, more scientists/doctors.

Law/banking has become a racket, parasitic sector, extorting companies and good folks, with the blessing of the government.

Bank of America just reached a deal to buy Merrill Lynch. That really helps everything as now Merrill won't have to dump assets. Looks like AIG will though.

FED expected to expand lending facilities accepting a greater range of assets for collateral.

S&P futures down 2.4%. Was 3% earlier tonight

Asian markets are closed not much of liquidity today otherwise the futures would have been slaughtered.

Why are they closed?

National Holiday. I had thought it was just Japan but it is most of Asia.

Yep its one company after another first it was Northern Rock Bank which the goverment saved now we have XL Airways which is the third largest airline package holiday biz over here collapse which left 85,000 people stranded and they reacon its the tip of the iceburg for more holiday companys and airlines going bust.

Turbulence in the aviation industry has already brought down a series of small airlines over the past year - but the collapse of XL Airways is on an entirely different scale.

From the BBC

Thousands of holidaymakers have been left stranded by XL's collapse

The demise of the carrier and its parent firm, the UK's third-largest tour operator, have left up to 85,000 people stranded abroad and disrupted another 200,000 people's holiday plans.

Travel industry insiders say its failure has sent "shockwaves" through the business and is likely to be followed by more holiday companies going bust.

The full story here

http://news.bbc.co.uk/1/hi/business/7612120.stm

They are also saying that Lehman is to go into insolvency

Preparations are being made for US investment bank Lehman Brothers to file for bankruptcy protection.

The firm was pushed to the brink on Sunday after UK bank Barclays pulled out of talks to buy most of Lehman.

If no new financing is found before Wall Street opens on Monday, Lehman will have to seek so-called Chapter 11 bankruptcy protection.

Full story here

http://news.bbc.co.uk/1/hi/business/7615712.stm

Pretty fucked economy atm me thinks

Yeah while all the guys that ran the company will get some compensation into the hundreds of millions of dollars probably...

And most likely paid themselves 10's of millions of dollars over a just a year or two period. Who knows what they paid themselves as holdiay bonuses and what not...

It's no wonder the company gone broke.

it has nothing to do with the $30 billion in bad real estate loans right?

the days of $100k bar bills on their bonuses are over.

Well thats what the Government will say:1orglaugh

Government will say something like this...

"Dear Fellow Americans, we at teh White House feel that the economy is strong and our bailing out the very pillars of our economy from bankruptcy after bankruptcy is nothing more than a indicator of how our economny is not only stable but is developing and growing...

These pillars are merely 50 years old from Fane Mae to Freddie Mac all the way to our most recent acquisitions in our banking system. These truly are the foundations of our economy since before the great depression and these very institutions saw to it our way out of the Great Depression of the 1920's. These institutions work hard for the American people, never mind that the top level executives of these pillars paid themselves billions of dollars over the years and never mind how they stripped many hard working families of Pensions, and retirement savings, and home investements in one of the biggest American heist's in world history with no Arrests or convictions of these hard working men! These well educated men see to it everyday that our economy is the strongest in the world. Awright so we stamp our own money and the Federal Reserve is bankrupt as fuck and throws cash at them blindly but that does not mean the world and our fellow Americans should fear investing in the economy! Our Forefathers would be proud that we have managed to borrow against the value of the American economy well over 200 times it's value into the trust's of Foriegn countries such as China, Saidi Arabia, and yes even Russia which makes it possible for us to print as much money as we like!

Your friend Cheney Bush 09, be sure to Vote for McCaine!"

I guess all these "whiz kids" that created all those derivatives were just a bunch of dumb-asses. Is this really a surpirse? I think there may be one homeless guy living under a bridge in queens who didn't see this coming.

Damn have no idea how I missed all these news :helpme
This is some scary stuff, anyone having more than 100K in their account now should be worried if people start selling out on their financial stocks :2 cents:

Lehman CEO Fuld had several chances to sell part of the company and even had an offer last month from a Chinese bank and he turned them all down.

Seems the Fed guys carried out their threat that "some financial will be allowed to fail". From what I read they refused to help Lehman out like they helped out Bear Sterns. So Lehman will now be liquidated piece by piece and the creditors (everyone having a security paper from them is a creditor) will be paid off that. We will see how much will be returned.

Everyone having a stock of them has now toilet paper. :uhoh

amazing how a 150 year old bank could let it come to this point