Lehman Brothers bank to go into insolvency (maybe)

[eliquant]

Well "Lehman Brothers" had too much exposure to mortgage backed assets so if the US government doesn't inject funds with a rescue plan (it said it will not) then it means insolvency which admitedly takes months to complete.

Barclays and Bank of America pulled out of any rescue deal today.

So what does this means for the other financial institutions which has money owed to it by Lehman's ..... yes it has a knock on effect.

I think there's going to be many Unix Java / C# CVs sent out from Lehman's tomorrow.

Worst of it is that I got an old mate with 3 daughters there who I've not seen in a long time, god knows what he must be thinking.

[PRC1964]

I know a couple of people there. They have however made so much dosh over the last few years that I doubt they'll suffer too much.

[Cyberman]

Well "Lehman Brothers" had too much exposure to mortgage backed assets so if the US government doesn't inject funds with a rescue plan (it said it will not) then it means insolvency which admitedly takes months to complete.

Barclays and Bank of America pulled out of any rescue deal today.

So what does this means for the other financial institutions which has money owed to it by Lehman's ..... yes it has a knock on effect.

I think there's going to be many Unix Java / C# CVs sent out from Lehman's tomorrow.

Worst of it is that I got an old mate with 3 daughters there who I've not seen in a long time, god knows what he must be thinking.

.. and poor old New Lie scapegoat Northern Rock had no US-Subprime. All they wanted was a short-term loan after money-markets dried up, but Mervyn King in his wisdom initially refused, causing a bank run, draining 14 Billion from savings, which is virtually the amount that they now owe in loans to the BofE. At least the US government is trying to help its banks rather than kill them through ineptness and starvation of funds.

[PM-Junkie]

.. and poor old New Lie scapegoat Northern Rock had no US-Subprime. All they wanted was a short-term loan after money-markets dried up, but Mervyn King in his wisdom initially refused, causing a bank run, draining 14 Billion from savings, which is virtually the amount that they now owe in loans to the BofE. At least the US government is trying to help its banks rather than kill them through ineptness and starvation of funds.

So the US government has stepped in to save Lehmans? When did that happen?

[Cyberman]

So the US government has stepped in to save Lehmans? When did that happen?

They are involved in trying to sort out a deal. I am sure they will have to provide some guarantees to the buyer, but a collapse of Lehmans would have a massive knock-on effect throughout the financial markets causing a domino effect. I cannot see the USA allowing that to happen, but time will tell.

[scooterscot]

No maby about it.... going going gone!

We're all doomed.

[BlasterBates]

Merrill bought by Bank of America

Lehmans in chapter 11...and Merrill Lynch bought before it had to go too, two banks in one day. The dollar has held up, but the stock markets will take a pounding.

[GreenerGrass]

Merrill bought by Bank of America

Lehmans in chapter 11...and Merrill Lynch bought before it had to go too, two banks in one day. The dollar has held up, but the stock markets will take a pounding.

I think the news on Merrill Lynch is just as significant.
Who next? FTSE down 2.5% already.

Don't panic! DON'T PANIC!!!

[ace00]

I think the news on Merrill Lynch is just as significant.
Who next? FTSE down 2.5% already.

Don't panic! DON'T PANIC!!!

Too late! TOO LATE!
It's going to be nasty today in the UK. FTSE -5% More ?

[techno]

the dollar

What do you think will happen to the dollar today, up into the 1.80+ mark or stay relatively where it is...?