Lehman Brothers bank to go into insolvency (maybe)

[BrilloPad]

ouch.

Just to be 100% sure, does this now mean that there are hundreds of unemployed ex-Lehman computer programmers here in London? That can't be good for rates, another 10% off?

probably thousands unemployed in bangalore. We should have a whip round for Bob Shawadiwadi.

[dude69]

i have to confess (please forgive my ignorance) I didn't quite understand at first, what is meant by 'bankruptcy protection', I thought they were still trading, but deep in the doo-doo. Seems however people are clearing their desks.

I guess rather like Enron, when there was plenty of looting going on.

Any Lehman contractors here? Walking out with monitors under each arm?

[Moscow Mule]

i have to confess (please forgive my ignorance) I didn't quite understand at first, what is meant by 'bankruptcy protection',

It's the US equivalent of going into Administration

[HairyArsedBloke]

probably thousands unemployed in bangalore.

India's Nifty index was down like everyone else @ approx -3.5%.
However, their IT services index was off well over 5%. I suppose they are thinking the game is up.

Edit: Frack - I see the FTSE is off > 5% now.

[DaveB]

i have to confess (please forgive my ignorance) I didn't quite understand at first, what is meant by 'bankruptcy protection', I thought they were still trading, but deep in the doo-doo. Seems however people are clearing their desks.

I guess rather like Enron, when there was plenty of looting going on.

Any Lehman contractors here? Walking out with monitors under each arm?

They've filed for Chapter 11 bankruptcy protection which essentially allows them time to try and reorganise their finances without creditors demanding immediate repayment of debts. Management continue to run the business but all major financial decisions have to be approved by a Bankruptcy court at which both the company and it's creditors are represented.

Staff will have been told to go home and probably wont get paid any salary owed. The only people still working will the the senoir managers trying to find a way out of the mess.

Chapter 7 is the point at which they are officially put into Liquidation.

It's not over yet for Lehmans, but unless they come up with a plan that keeps the creditors happy they won't be around for much longer.

[SandyDown]

I told ya guys, time to escape from financial companies to Oil companies, pure black gold

[BrilloPad]

They've filed for Chapter 11 bankruptcy protection which essentially allows them time to try and reorganise their finances without creditors demanding immediate repayment of debts. Management continue to run the business but all major financial decisions have to be approved by a Bankruptcy court at which both the company and it's creditors are represented.

Staff will have been told to go home and probably wont get paid any salary owed. The only people still working will the the senoir managers trying to find a way out of the mess.

Chapter 7 is the point at which they are officially put into Liquidation.

It's not over yet for Lehmans, but unless they come up with a plan that keeps the creditors happy they won't be around for much longer.

No-one will trade with them now even if they could have survived.....

DOOMED

[DaveB]

No-one will trade with them now even if they could have survived.....

DOOMED

Yep, but it may allow them to come up with a plan that lets them split up the business and sell off the parts to other banks as a going concern. They didnt manage it last week, hence Chapter 11 this week. Lehman's as a name is probably gone for good, but the business and jobs that go with it may be rescued under another name.

[BrilloPad]

Yep, but it may allow them to come up with a plan that lets them split up the business and sell off the parts to other banks as a going concern. They didnt manage it last week, hence Chapter 11 this week. Lehman's as a name is probably gone for good, but the business and jobs that go with it may be rescued under another name.

It is a possibility - but why not just head hunt the people you want? I bet they would be so pleased of a job they would work for peanuts.

Apologies if this sounds a bit heartless - I do feel sorry for them. I have a couple of friends there - very upsetting.

[ace00]

FTSE has gone through -5%
Banking? HBOS Hbos Plc 189.0 -32.98%