Posted on 09/14/2008 12:48:11 PM PDT by jimbo123
The fate of Lehman Brothers Holdings Inc.'s darkened early Sunday afternoon with Barclays PLC, the sole remaining bidder for the 158-year-old Wall Street firm, telling federal regulators that it is walking away from a transaction, people familiar with the matter say.
The situation was rapidly evolving, and it's possible Barclays or another bidder would emerge to save Lehman before markets opened Monday. But with the government balking at putting any taxpayer money at risk for Lehman, the likelihood of a transaction was dimming. That would leave an orderly liquidation as the most likely scenario, a dramatic outcome for a once-powerful firm.
(Excerpt) Read more at online.wsj.com ...
Hmmm . . . might be an ugly opening for Asian, and then European and US, markets in the next few hours.
(Can we check to see Obama's connections to the meltdown?)
Cheers!
Another 24 billion for the taxpayers to clean up.
BOA (Bank of America) just walked away also. I’ve got a live feed of Dow Jones newswire running and the BOA news just posted 2 minutes ago.
And, I fear, we’re a lot closer to the beginning of this crisis than to the end of it.
Much of this industry is a house of cards.
This is pretty serious stuff, I believe there are significant implications in the financial markets if Lehman doesn’t find a buyer.
All of the investment banks are working right now to prevent a derivatives meltdown tomorrow. Lehman must file for bankruptcy by midnight tonight or tomorrow will be a bloodbath for everyone.
How is this beneficial? Wouldn’t bankruptcy be another trigger event for credit default swaps?
Last couple of news items....on DJ Newswire
Paulson asks Fincl Cos to Keep Trading with Lehman
ISDA extends Lehman Netting to 6pm
And here’s a fresh one...Merrill in talks with BOA over merger
Pre-packaged bankruptcy that delays the sale so the CDO’s won’t be sold at 5 cents on the dollar.
This big thing for Lehman is the need for collateralization of their swaps. I wonder if part of the ISDA thing is to see if others might be able to take over their swap book. And now Merrill rumored to be in talks with BofA? Sheesh, this is gonna be a wild ride tomorrow.
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