Black Monday? Lehman Bros

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
15/09/2008 08:50

Is today going to get that title?



It has been announced that Lehman Bros., one of USA's leading Investments Banks is filing for Chapter 11 bankruptcy.



Barclays and an American led consortium have pulled out of possible rescue deals which does not bode well.



If you have investments on stock markets and currency speculative positions take care, it is going to be a rocky ride I expect.

Littlenige



Joined: 24/12/2006
Posts: 3594

Message Posted:
15/09/2008 09:05

Meryl lynch teetering...............



could well be meltdown in the us.

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
16/09/2008 12:51

A.I.G... there are also in trouble according to the news this morning..

Perry


Joined: 27/01/2007
Posts: 413

Message Posted:
16/09/2008 13:06

It is very very serious. Other major banks (and I mean major players) were creditors to Lehman to the tune of $138 billion. The latest is that approx 60% will be recovered, but is still causing to cause further disruption. This in turn is causing further distrust among the banks with all of them very reticent to lend or to increase their exposure. Of course this will lead to a further shortage of cash flow and potentially further going to the wall. Bank of America taking on Merrill Lynch at least has prevented two going at the same time..... It is going to be a very rocky road.

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
16/09/2008 13:16

Perry.. I see Barclays are interested in buying some of Lehman assets.Hope they dont bite off more than they can chew..I bank with barclays...

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
16/09/2008 15:23

As I said above, Barclays not interested, they had more sense.

Perry


Joined: 27/01/2007
Posts: 413

Message Posted:
16/09/2008 15:41

There are going to be several announcements around selling and take overs - watch this space !

robin hood


Joined: 26/05/2008
Posts: 238

Message Posted:
16/09/2008 15:47

Barclays look like buying into Lehman. Now that the time is rife. Bargain prices for excellernt staff with Good contacts and skills. Who needs Lehmans. They'd better be quick though, 'cos the asset value of Staff drops exponentially with time. Watch the performance in 2 years time.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
16/09/2008 16:59

The Footsies below 5000 - UK inflation at 4.7% - property prices down!.



But hey, we're all happy are'nt we?

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
16/09/2008 18:47

hi all..looks like you were spot on Perry. Royal BankOf Scotland are struggling,,

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
16/09/2008 18:57

Here's one market not struggling!



Australia's largest brothel, Daily Planet, has invited traders to pour cash into the world's oldest profession.



If successful, a plan to raise 12m Australian dollars (£4.22m; $6.66m) from the sale of a 48% stake in the brothel's property arm would make Daily Planet the world's first stock market listed brothel, the Melbourne based company said.



The money would be re-invested in, among other things, a brothel in Sydney, two major strip clubs and possibly in production companies which make porn.



In the longer-term, Daily Planet aims to expand internationally.



"Because the old saying that sex sells is so true, because the adult industry is so massively popular and profitable, we believe the opportunities are unlimited," said Daily Planet director Andrew Harris.

Littlenige



Joined: 24/12/2006
Posts: 3594

Message Posted:
16/09/2008 19:09

it was on the raidio in the south trnc goverment has gone bust no money to pay public employees.

w26kay



Joined: 14/10/2007
Posts: 479

Message Posted:
17/09/2008 00:23

Now AIG going down the pan. Meryll Lynch, doubts and a takeover? What on earth is happening? And they call these people clever? If they were that clever, why didn't they forsee their own negligence and reckless practices?



There is no doubt that this will have catastrophic global effects.

PtePike



Joined: 20/05/2008
Posts: 2334

Message Posted:
17/09/2008 00:25

"A.I.G... there are also in trouble according to the news this morning.."



Washing machine owners will be living in fear...

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 00:35

No1Doyen,



I am more into planet x myself.



Now reading the postings from Littlenige, w26Kay and Pikey I guess 2012 might just be the answer. Gosh this is depressing!



wyn

Reproman


Joined: 05/06/2008
Posts: 252

Message Posted:
17/09/2008 01:15

A.I.G. the world largest insurance firm has over 12 milllion polices in the UK alone ( for you and me this covers Car, household, electrical warranties etc) and is in talks tonight to prevent it from going under...the impact of this firm going bust will be far more widespread than any bank.



As Lehman Bros vacate over 1 million sq foot of prime office space in londons Docklands, guess which insurance firm is underwrtten to pay the rent for the next for 4 years...A.I.G. !!! LOL



to the tune of £170 million.



tomorrows papers will be very interesting indeed!

w26kay



Joined: 14/10/2007
Posts: 479

Message Posted:
17/09/2008 01:21

Wyn, don't be depressed. What will be, will be. Surely you can remember the previous recessions and how you battened down the hatches and survived?



On the news it is all doom and gloom, but guess what, today the sun was shining and all is well.



Take care.

Kay

Littlenige



Joined: 24/12/2006
Posts: 3594

Message Posted:
17/09/2008 08:25

could be the haliax next 30% loss in 48 hurs !

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 08:35

w26kay,



Hi Kay,



I am in very good heart, but the board seems to be overdosing on doom and gloom.

We are out in TRNC next week, and perhaps if we tell tales of our weather in the North East

this last 3 months it will cheer them up!



Take care,



wyn

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 08:41

Hi All,



AIG is saved by an 80 billion dollar lifeline from Uncle Sam!(Far East markets stabilising)



HBOS have issued a statement that they are financially sound, and in fact are the largest



reciprient of savers funds in The UK. All bank shares are being hammered.



wyn

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 08:44

Cyprusishome,



Barclays have bought a large part of Lehman Brothers business. I hope its not a deal too far!



wyn

Littlenige



Joined: 24/12/2006
Posts: 3594

Message Posted:
17/09/2008 09:02

AIG bail out calms markets

Markets in Asia reacted with relief after US Federal Reserve rescued AIG, the insurance giant whose potential failure experts feared would be more damaging than Lehman Brothers.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
17/09/2008 10:35

Think another poster made the point somewhere, Barclays originally pulled out of any deal, then when the think went pear shaped they jumped in and bought at massive discount.



Hope it does not rebound as has happened in the past.



There will be more to come and more casualties along the way.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
17/09/2008 10:49

Put your money in Northern Rock. 100% Government guarantee.

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 11:35

Hi All,



Latest on HBOS is that they are in talks with LOYDS TSB with a view to a possible merger.



FSA has attested to the financial strength of HBOS.



Heady times these for those with lots of cash. I'm not too concerned!



wyn

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
17/09/2008 12:19

Wyn. I wouldn't put too much faith in what the FSA has to say.



When the Northern Rock saga became apparent The tripartite Treasury Committee report said the Financial Services Authority (FSA) had failed to "stress-test" Northern Rock's business model sufficiently.



The report also said the UK's tripartite financial authorities - the FSA, the Treasury and the Bank of England - were insufficiently prepared to deal with Northern Rock's difficulties and needed to communicate better with each other.



Says it all eh?

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
17/09/2008 12:57

No1Doyen,



The FSAs assurances were very robust in their wording but there is a general atmosphere of



doubt around every statement that is being made at present. Who do you believe? Know any good jokes?



wyn

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
17/09/2008 13:00

You are right Wyn. A lot of conjecture at the moment. Just posted a Joke funny enough. You must be psychic!

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
17/09/2008 17:31

I believe part of the reason the US government bailed out AIG is the massive amount of loans they insured. If they fell over a massive wave of new writedowns would hit Banks arround the globe as they had to writedown the value of mostly US based loans which were no longer insured if they default. In some ways they might see it as a smaller investment than being forced later to prevent a domino like failure of commercial banks etc later.



Of course the moral hazard problem of bailing out private companies exists but I guess market purity and ideology sometimes needs to be set aside to prevent fare more catastrophic flow on effects to the finance industry and the real economy as well.



As an ex banker everyone who has much knowledge of the system knows the whole financial system ultimately survives on confidence of every day depositors, investors and borrowers which is very fragile right now.



Aussie