Posted on 09/11/2008 2:36:55 PM PDT by milestogo
U.S. Government to Arrange Sale of Lehman Brothers
By David Cho and Heather Landy Washington Post Staff Writers Thursday, September 11, 2008; 5:30 PM
The Treasury Department and the Federal Reserve are engineering a sale of Lehman Brothers through a consortium of private firms. The details are not finalized, but sources familiar with the matter say the purchase is expected to be completed and announced this weekend before Asian markets open Monday morning.
Lehman Brothers, which had been anxious to show it could weather the credit crisis that contributed to the firm's $3.9 billion third-quarter loss, said Wednesday that it would sell a majority stake in its investment-management division, slash its dividend and spin off about $30 billion of real estate assets.
(Excerpt) Read more at washingtonpost.com ...
Where were they in 2000 with my tech holdings?
This is ridiculous. The least “needy” people get bailed out each time. The only solution is quite simple: NO BAILOUTS.
As a LEH stockholder, I am taking a beating on a once great company and stock. It was over $80 last year, now ... $4. Ug.. I owned it from mid-1990s when they built up a great franchise.
The fall has been swift. Whoever gets their assets will get a great deal.
“Yes, you can fail in your business and your investments but the American Tax Payer is there to bail out the Big Finance Houses when they make bad investments and fail.”
As a Lehman stockholder, I can assure you, I am not getting bailed out!
The government bails out Fannie Mae, Freddie Mac and Lehman Brothers...with taxpayer money.
Are these people going to give back their millions of dollars in bonuses? Jamie Gorelick made 26 million at Fannie Mae. Johnson made similar millions. All the while they cooked the books to make sure they got their bonuses. And the taxpayers now pick up the pieces.
Apparently there is no end to welfare. Corporate welfare, private welfare.
Let this be a lesson to everyone here...start a company, take as much risk as you want....as long as you become big enough the Gubmint will be there to bail you out.
Why manage risk at all? Your government will be there to sell you to the Saudis.
Hold your horses people. The G’ment will make money on the Bear Stearns deal, and, if they do the same type of thing here, they’ll most likely make money on this deal too. Way too much jumping of the ‘bailout with taxpayer money’ gun here. Not a dime of taxpayer money was actually spent, nor was a single shareholder bailed out (ie, prevented from loosing their shirt). I’d get the hard facts first before yelling ‘taxpayer getting soaked for fat cats’ and ‘corporate socialism’.
How did investors in Bear Stearns get bailed out?
How will investors in Lehman get bailed out?
Why was the gubmint involved with LTCM? How much did that one cost you?
I don’t know why you bother. Thanks for trying, though.
I don’t think these folks understand who is being “bailed out” and who is losing everything. Hint: if everything you’ve invested in a company disappears, you’re not being “bailed out” out of anything.
I believe the gubmint turned a slight profit on LTCM...
Not the point. The point is this: does gubmint involvement signal a crisis of the type private companies cannot work out for themselves?
I'm a glutton for punishment.
That would be a neat trick, considering the government didn't spend a dollar helping LTCM.
anyone know?
bet they are selling foreign like UBS and others have
this housing market boom turns bust and subsequent loan bundling exposure collapse has turned into a bonanza for foreign firms to pick up huge pieces of the US and US exposed financial services industry on the cheap with a weak dollar.
i don't recall anything like this before except when the Japs bought up chunks of real estate after the Carter recession
i had a BBQ lunch with a banker today on some commercial mortgage stuff....he said his bank wished they were US Bank, they had no bundling exposure
so many banks and firms going cheap but so few acquirers(sic)fat with cash domestically
those Lehmans shoulda stayed in Montgomery I tell ya...and the damned Shulzbergers in Knoxville while we're at it
but, it's a cycle you know that
this huge housing boom had to play out and those caught with their britches down are geting slammed
i’m ambivalent on the government arranged sale stuff
BSCO and this one I have more pause than I do with Fannie and Freddie since they were already sorta like TVA of lending
but all the folks responsible should lose it all just like you or I would
this is complex stuff....the ramifications are more heady than just let em burn...
I really don't have the answers but I imagine most governments would make a deal to make the collapse of a giant more cushioned
first one I recall we bailed out when I was in college was Franklin National back in 1974..had we bailed out many before that?
bailing out simply means sorta that depositers get protected and capital holders lose it all...more or less bank wise
not sure how it works on mortgage companies , i would assume with investment and brokerage institutions it means the cash security accounts are backed up but the OE is wiped out.
I'm open to education here...
>>No, it is Corporate Socialism.
Just a new variant of Collectivism.
U.S. Treasury printing presses running 24/7.
U.S. Taxpayers deeply saddened.
U.S. Dollar in the trash can.
Lehman Brothers executives expecting rich severance checks.
What’s wrong with this picture?
Show me.
U.S. Dollar in the trash can.
Up 12.5% against the Euro, since July.
What’s wrong with this picture?
I blame the public schools.
Agreed. Lehman has to serious problems, but isn’t ready to collapse this weekend.
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