Fourth Largest US Merchant Bank Collapses

2008-09-15 06:19:00

#1

Dilbert_X: The X stands for; +1,822|6525|eXtreme to the maX

Lehman Bros files for bankruptcy

The fourth-largest investment bank in the US, Lehman Brothers, has filed for bankruptcy protection, amid a growing global financial crisis.
Lehman had incurred losses of billions of dollars in the US mortgage market.
The move threatens to deal a further blow to the global financial system, as banks unwind their deals with Lehman.
Merrill Lynch, also stung by the credit crunch, has agreed to be taken over by Bank of America in a dramatic weekend of events for Wall Street.
.......
To help prevent panic on financial markets, the Federal Reserve said for the first time it will accept stocks owned by banks as collateral for short-term cash loans, broadening its emergency lending programme.

Also 10 of the world's biggest banks on Sunday agreed to establish a $70bn emergency fund, with any one of the banks able to able to tap up to a third of it should they face any liquidity problems.

http://newsvote.bbc.co.uk/2/hi/south_asia/7396366.stm
Holy crap, where will this end?

And don't 'liquidity problems' just mean they gambled more than they had and lost?

Last edited by Dilbert_X (2008-09-15 06:20:58)

Fuck Israel

2008-09-15 06:21:33

#2

thraSK: Best ___ in Aus; +57|6402

Most likely in a court of Law. Or possibly with the take over by the Bank of America

2008-09-15 07:51:47

#3

kylef: Gone; +1,352|6912|N. Ireland

Heard it collapsed this morning. Liquidity problems refer to the fact that it is having problems transferring assets into cash. Read in FT that there has been interest from Bank of America and Barclays.

2008-09-15 08:02:56

#4

ATG: Banned; +5,233|6948|Global Command

Dilbert_X wrote:
Holy crap, where will this end?

And don't 'liquidity problems' just mean they gambled more than they had and lost?

It will end when these companies and banks and the government have harvested all that they can in terms of money.

Where is talk of opening up these companies books?

I want to know where the money went; don't tell me there has been billion dollar losses, show me.
Where did those billions go and who has them now?

This whole thing smacks of something intentional. It's been talked about for a long time, the coming ( and now here ) economic calamity.

I want a bailout. I am pushed to the breaking point and my finances are in emergency status.

Don't tell me my company isn't big enough.

When small businesses begin to fail en masse, then we are really screwed. And you watch. It's happening right now.

Thousands and tens of thousands of small business owners have reached a point where it simply no longer makes sense to be in business in Southern California. I talk to people in Manhattan who describe to me an end of the world feeling as they see their businesses implode. From New York to California I see dying towns where once there were factories and now there are Walmarts.

I don't think people understand the depth of the economic crisis.

2008-09-15 08:12:50

#5

Lotta_Drool: Spit; +350|6602|Ireland

I hope the company that holds my Mortgage goes bankrupt before I do, that way I can say I won.

2008-09-15 08:14:18

#6

God Save the Queen: Banned; +628|6762|tropical regions of london

2008-09-15 08:21:47

#7

jord: Member; +2,382|7097|The North, beyond the wall.

Good.

2008-09-15 08:47:14

#8

Stubbee: Religions Hate Facts, Questions and Doubts; +223|7162|Reality

B of A won't touch Lehmann. They chose Merrill instead. Lehmann has 150 B in debt to unsecured creditors and 180 B in debt for bonds. That is what the morning news said.

The first domino has fallen
where it stops no one knows.

@jord why is it good? When the US economy tanks it will FUBAR the rest of us as well.

The US economy is a giant Ponzi scheme. And 'to big to fail' is code speak for 'niahnahniahniahnah 99 percenters'

2008-09-15 08:49:54

#9

Mekstizzle: WALKER; +3,611|7040|London, England

Barclays and the other bank aren't going to fish this one out of the deep, they pulled out of any rescue big, it's gonna go down with all hands on deck. It's a pretty big event imo. And so the world economy takes a turn for the worse

2008-09-15 08:53:22

#10

CameronPoe: Member; +2,925|6975

Why doesn't someone bail them out?

2008-09-15 08:58:35

#11

ghettoperson: Member; +1,943|7068

Let's bail everyone out!

2008-09-15 09:00:47

#12

Mekstizzle: WALKER; +3,611|7040|London, England

CameronPoe wrote:
Why doesn't someone bail them out?

If the taxman bails them out, then it'll just piss off more taxpayers. It'll also make banks think that they can act like dicks and it won't matter because if anything bad happens they'll just be bailed out. Also it'll cost a shitload of money to bail them out. Also, sometimes you need to let these things happen.

2008-09-15 09:04:10

#13

OrangeHound: Busy doing highfalutin adminy stuff ...; +1,335|7069|Washington DC

CameronPoe wrote:
Why doesn't someone bail them out?

The government won't bail them out because economists do not see their failure as a significant damage to the economy, unlike Fannie Mae and Freddie Mac.

Another company won't bail them out because it is not a wise business decision.

2008-09-15 09:15:51

#14

CameronPoe: Member; +2,925|6975

I was being facetious ftr.

2008-09-15 09:20:29

#15

God Save the Queen: Banned; +628|6762|tropical regions of london

Stubbee wrote:
B of A won't touch Lehmann. They chose Merrill instead. Lehmann has 150 B in debt to unsecured creditors and 180 B in debt for bonds. That is what the morning news said.

The first domino has fallen
where it stops no one knows.

@jord why is it good? When the US economy tanks it will FUBAR the rest of us as well.

so the first domino wasnt country wide or indymac?

2008-09-15 09:23:19

#16

ATG: Banned; +5,233|6948|Global Command

God Save the Queen wrote:
Stubbee wrote:
B of A won't touch Lehmann. They chose Merrill instead. Lehmann has 150 B in debt to unsecured creditors and 180 B in debt for bonds. That is what the morning news said.

The first domino has fallen
where it stops no one knows.

@jord why is it good? When the US economy tanks it will FUBAR the rest of us as well.
so the first domino wasnt country wide or indymac?

The first domino was George Bush.

2008-09-15 09:24:15

#17

God Save the Queen: Banned; +628|6762|tropical regions of london

ATG wrote:
God Save the Queen wrote:
Stubbee wrote:
B of A won't touch Lehmann. They chose Merrill instead. Lehmann has 150 B in debt to unsecured creditors and 180 B in debt for bonds. That is what the morning news said.

The first domino has fallen
where it stops no one knows.

@jord why is it good? When the US economy tanks it will FUBAR the rest of us as well.
so the first domino wasnt country wide or indymac?
The first domino was George Bush.

the first domino was ronald reagan

2008-09-15 09:29:08

#18

usmarine: Banned; +2,785|7181

bad management. sure, blame the govt and economy and not the dopes who run these companies.

2008-09-15 09:31:55

#19

ATG: Banned; +5,233|6948|Global Command

jord wrote:
Good.

http://finance.yahoo.com/intlindices?e=europe

2008-09-15 09:46:54

#20

Mekstizzle: WALKER; +3,611|7040|London, England

Heh, the employees get fired, and now they can't pay their rent/mortgages.

The Parisian only just arrived in Canary Wharf for his first day of work, where he was due to earn £45,000 as a trader.

But said he did not even make it as far as his desk before he was told everybody had been fired.

"I do not know what I will do now. I've taken out a six-month lease on a flat and I don't know how I will pay for it," he said.

I feel for this guy, I mean first day and from another country. That's a giant kick in the balls.

http://news.bbc.co.uk/1/hi/uk/7616996.stm

2008-09-15 09:49:09

#21

m3thod: All kiiiiiiiiinds of gainz; +2,197|7090|UK

i would fucking it leg it back to paris pronto. fuck the lease.

Blackbelts are just whitebelts who have never quit.

2008-09-15 09:55:40

#22

Surgeons: U shud proabbly f off u fat prik; +3,097|6909|Gogledd Cymru

Mek, did I just read correctly, you're sorry for a fucking french berk?

2008-09-15 11:33:29

#23

jord: Member; +2,382|7097|The North, beyond the wall.

ATG wrote:
jord wrote:
Good.
http://finance.yahoo.com/intlindices?e=europe

If it would have been a thread on Britain I would have expected my two favourite American ex service personnel to say the same.

2008-09-15 11:46:44

#24

steelie34: pub hero!; +603|6800|the land of bourbon

banks are lame. they are the only company in the world that can operate in the red, and they prey on poor people. i'm glad they are failing. it's their own goddamn fault for inflating mortgage rates so people had to take gargantuan loans to pay for overpriced houses. the housing market isn't crashing, its just returning to normal and those pricks at the bank are learning a hard lesson.

https://bf3s.com/sigs/36e1d9e36ae924048a933db90fb05bb247fe315e.png

2008-09-15 14:19:10

#25

m3thod: All kiiiiiiiiinds of gainz; +2,197|7090|UK

Mek-Stizzle wrote:
Heh, the employees get fired, and now they can't pay their rent/mortgages.

The Parisian only just arrived in Canary Wharf for his first day of work, where he was due to earn £45,000 as a trader.

But said he did not even make it as far as his desk before he was told everybody had been fired.

"I do not know what I will do now. I've taken out a six-month lease on a flat and I don't know how I will pay for it," he said.
I feel for this guy, I mean first day and from another country. That's a giant kick in the balls.

http://news.bbc.co.uk/1/hi/uk/7616996.stm

Well at least he has his own website.

http://edouard.darchimbaud.free.fr/

Blackbelts are just whitebelts who have never quit.

BF2S Forums Fourth Largest US Merchant Bank Collapses

Dilbert_X wrote:

CameronPoe wrote:

CameronPoe wrote:

Stubbee wrote:

God Save the Queen wrote:

Stubbee wrote:

ATG wrote:

God Save the Queen wrote:

Stubbee wrote:

jord wrote:

ATG wrote:

jord wrote:

Mek-Stizzle wrote:

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