Posted on 09/14/2008 7:39:42 PM PDT by HAL9000
The possible collapse of one of world's biggest investment banks could be "catastrophic" and lead to the "implosion" of the banking sector, Sky sources say.British bank Barclays had appeared to be the frontrunner to take over the struggling Lehman Brothers but has pulled out of the bidding, a source close to the deal said.
And a consortium led by the Bank of America is reported to have also dropped out.
~ snip ~
(Excerpt) Read more at news.sky.com ...
I think it going be bloody day on Wall Street
Will be fun to see how expert in prediction the “experts” were by COB tomorrow.
Thought this was entirely “contained”?
Dow futures are down 273 points.
Bank of America bought Merrill Lynch....
Lehman is looking at a bankruptcy filing in the morning...
And AIG is in deep shine-ola.
It’s going to be a wild day Monday.
The futures are finally available and are sitting at -252 right not. It's going to be bloody - especially in the derivatives market.
Savings and Loan Bailouts part due
http://economics.about.com/od/governmenttheeconomy/a/savings_loan.htm
The Sky (News) is falling!
Not.
There was a trading session today to unwind many of derivatives involving Lehman. The transactions are conditioned upon Lehman filing for bankruptcy within the next 72 minutes. They’re set up for a fairly orderly wrap-up if (when?) it goes through.
paulson said no more federally-funded bail outs.
I already get up at 4am to get to eork by the opening. Looks like I should hit the sack now. :(
Yup and I am in banking as a profession. Tomorrow should be real fun at work.
Bank Of America is showing that companies that have made the right decisions are going to profit from this in the long run by buying good assets cheep. The best thing the government did this weekend was taking a step back and showing their would be no more bail outs. Lets just hope they stick to it.
Where does Citi fall in all this?
I’m a little freaked as TPG & Goldman own my employer right now, and they are in the process of selling it - it’s in the hands of the FCC & DOJ...this could screw that up. I hope not...
BBC Link:
We’ll see if the BK filing for Lehman comes through - if not....
Hopefully they don't fall.
... equities trader here ...
That special trading session may help some, but...
Lehman going bankrupt, Bank of America overpaying to buy Merrill Lynch, AIG going hat-in-hand to the Federal Reserve for a $40 billion bridge loan...
The one thing this isn’t going to be is orderly.
I hope your right.
heads up!
This is strictly my own opinion - but I thing that they're next.
I am sure TPG & Goldman are working w/ the PR people to make sure there is a memo in all of your inbox tomorrow to lesson some of your anxiety.
I think there will be extraordinary measures taken to protect CitiGroup, because if CitiGroup fails it could literally take down every financial institution on Earth with it through a “domino effect.” And that will trigger off the 21st Century equivalent of the Great Depression, unfortunately—which will end in World War.
Is there some real accounting going on in this mess? I’d like to know WHO f’d up, and HOW MUCH.
This is infuriating to me because I was counting on a low gold price in about three weeks because I have a CD maturing that I wanted to convert to gold and silver coins. Now it’s bound to shoot back up to $1000
They are at the top, anybody watching Omaha?
Or did you mean "incoming?"
Can you take out a reasonably-priced short-term loan against the CD to buy the gold?
This end of the world thinking is ludicrous. I worked for Drexel Burnham in the 80’s when it imploded in 48 hours. The world didn’t end and the market didn’t crash. Lehman is/was an investment bank, not a retail brokerage firm or a commercial bank.
Derivative markets opened up Sunday to allow trades of Lehman positions within the banking system, and a Dow fall of 300 points is less than a 3% move.
None of what happened over the weekend will effect most of the rest of the economy. If anything, this will get us closer to the light at the end of the tunnel, because the 2 of the 4 biggest headaches, Merrill and Lehman, will be behind us. That leaves Washington Mutual (likely will be merged into JP Morgan) and AIG (if the capital plan is put into place tonight and tomorrow - Buffett/Berkshire is looking at a major stake), then most of the worst will be behind us.
In three weeks, 3rd quarter earnings will start to be announced. If JP Morgan and Citigroup report profits, then it is a good sign that we are closer to the bottom. Also Morgan Stanley, Wells Fargo (the best run bank in America) and Wachovia will all report pretty quickly. Those are the 5 to watch.
Thanks for an informed analysis and many investors at Wachovia appreciate it.
This is the start of the economic crisis that can occur once in a life time. The dreadful derivatives are finally going off.
Actually the best thing they could do is to stop the bailout BS all together and reverse course.
I roll my eyes in the general direction of this hysterical article.
“Can you take out a reasonably-priced short-term loan against the CD to buy the gold?”
Of course, takes about 20 minutes to fill out the paperwork. The typical charge is about 2% above whatever the CD is paying. The CD is the collateral.
The GDP is tangible. We have cards to use.
Whew! (wipes sweaty forehead!)
Here I thought I was going to have to call the able-bodied sons home to clear the north 40 to plant oats, corn, and beans!
Now they can continue on doing whatever, right? And I don’t have to sweet-talk some Amish neighbors to teach me how to plow with horseys?
It may present a tax problem. The CD is part of my IRA setup. If I buy the gold before the CD matures, I don't think it can be considered a transfer of IRA funds.
And no more golden parachuites for the CEOs and corp. officers that mostly created this mess.
The Fannie & Freddie guys got an obscene amount for what ? Failure.
It would help if Greenspan would STFU.
He’s got a dental health problem, rampant Cartermouth disease.
That is not correct. The CEO’s were following bullshit guidelines that forced this fail. Washington forced it and everybody pays.
This is worse than the starting of the Hadron collider. Women and minorities will be hurt the most.
Since you are one of the able-bodied mentioned, it is only proper Freeper etiquette to let you know you have been mentioned.
Should I talk to my Amish friends yet?
I actually waited for that and only got 3 earthquakes. My money went to Chicago btw. :^)
What are some good links to stay abreast of latest indicators and what are good online brokerages. ty
Sounds like you’re trying to do more of a “rollover”, not just a simple purchase.
Let it Die.
It will make for a better movie.
I use ‘bloomberg.com’ for the former,,,,and ETrade and Scottrade for the latter.
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