[Starvid]

Of course, international cooperation is paramount...we can't have these vultures taking our money outside the borders of the US...uh uh, ain't gonna let that happen...

If they leave for some tropical tax haven, well...


Would you like som US Marines with your Mojito?

This one is a little big, but check the link, it's spot on: http://www.pineywoodsmarines.org/images ... get-em.jpg

[Tyler_JC]

Who needs XLF puts when you can just buy the SKF?

I've got to hand it to you, Roccman. You made a great call on this one.

I wonder how badly Wall Street is going to react to the liquidation of one of its largest investment banks.

It's amazing how long it took for investors to realize that this company was worthless but when the end came...it came quickly.

Over the past week alone the company lost over 75% of its value and will lose what's left of it by tomorrow afternoon.

If LEH opens above $1 (if it even opens at all), I'll be shocked.

CRASH

[master_rb]

http://news.yahoo.com/s/nm/20080914/bs_ ... erica_dc_1

what about this, how does it affect markets together with other news? it's #1 yahoo headline

[Leanan]

I think that story might be outdated. Bloomberg, CNN, and others have reported that BofA has walked away.

http://money.cnn.com/2008/09/14/news/co ... /index.htm

[eXpat]

Derivatives market trades on Sunday to cut Lehman risk LOL! link

NEW YORK (Reuters) - A rare emergency trading session opened Sunday afternoon to allow Wall Street dealers in the $455 trillion derivatives market reduce their exposure to a potential bankruptcy filing by Lehman Brothers.

U.S. regulators and bankers were making last-ditch efforts on Sunday to prevent toxic assets from ailing Lehman Brothers spilling into global markets and rupturing investor faith in the international financial system.

"This is an extremely, and I stress extremely, rare event. It also speaks to the more general notion that, in today's highly disrupted financial markets, the unthinkable is thinkable," said Mohamed El-Erian, the chief executive of Pimco, the world's biggest bond fund, based in Newport Beach, California.

[Starvid]

[ReverseEngineer]

Derivatives market trades on Sunday to cut Lehman risk LOL! link

NEW YORK (Reuters) - A rare emergency trading session opened Sunday afternoon to allow Wall Street dealers in the $455 trillion derivatives market reduce their exposure to a potential bankruptcy filing by Lehman Brothers.

U.S. regulators and bankers were making last-ditch efforts on Sunday to prevent toxic assets from ailing Lehman Brothers spilling into global markets and rupturing investor faith in the international financial system.

"This is an extremely, and I stress extremely, rare event. It also speaks to the more general notion that, in today's highly disrupted financial markets, the unthinkable is thinkable," said Mohamed El-Erian, the chief executive of Pimco, the world's biggest bond fund, based in Newport Beach, California.

So the Big Boys are all getting together on a Sunday on the trading floor to try to divest themselves of Toxic Lehman products? They ALL want to sell, but who will BUY anything? The Hot Potato has been tossed out of the Board Room at the Fed and onto the Trading Floor! That HAS to be a show!

Reverse Engineer

[DantesPeak]

Derivatives market trades on Sunday to cut Lehman risk LOL! link

So the Big Boys are all getting together on a Sunday on the trading floor to try to divest themselves of Toxic Lehman products? They ALL want to sell, but who will BUY anything? The Hot Potato has been tossed out of the Board Room at the Fed and onto the Trading Floor! That HAS to be a show!

Reverse Engineer

Since no one wants to be tied up in bankruptcy, I think the main idea here is really to net out as many derivatives as possible - with brokers trying to see if they have Lehman more or less as the middleman between them.

[dorlomin]

So the Big Boys are all getting together on a Sunday on the trading floor to try to divest themselves of Toxic Lehman products? They ALL want to sell, but who will BUY anything? The Hot Potato has been tossed out of the Board Room at the Fed and onto the Trading Floor! That HAS to be a show!

Reverse Engineer

I think the trading is the default swaps and there may be companies that can cancel out each others commitments and so on.

But even amoung Lehmans $85 billion of property, much of it will still have a value. Not every last one is going to forclose with no resale value. Working out how much of the $85 billion is good and then paying a price you can make a profit from will be why traders are paid so much.

[ReverseEngineer]

So the Big Boys are all getting together on a Sunday on the trading floor to try to divest themselves of Toxic Lehman products? They ALL want to sell, but who will BUY anything? The Hot Potato has been tossed out of the Board Room at the Fed and onto the Trading Floor! That HAS to be a show!

Reverse Engineer

I think the trading is the default swaps and there may be companies that can cancel out each others commitments and so on.

But even amoung Lehmans $85 billion of property, much of it will still have a value. Not every last one is going to forclose with no resale value. Working out how much of the $85 billion is good and then paying a price you can make a profit from will be why traders are paid so much.

They already KNOW which assets are good and which are not. That is how they proposed to split to a Good Lehman and Bad Lehman. Sure, they might bid on some Good Lehman stuff, but NOBODY will bid on the Bad Lehman stuff. At the Benchmark of Merrill Lynch's sale at 23 cents on the dollar of some of their toxic debt (what IDIOT bought that stuff?), one has to figure around 75% of Lehman's stuff is bad paper.

I could see them negotiating to cancel out some default swaps, but I still don't see who will buy the Hot Potato.

Reverse Engineer

[DantesPeak]

The Fed is trying to come up with a last minute plan to lend banks/brokers $50 billion to then lend to Lehman.

But the NY Times says Lehman is finished:

As a result, people briefed on the matter said late Sunday that Lehman Brothers would file for bankruptcy protection, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago.

Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, as its subsidiaries remain solvent while the parent firm liquidates, these people said. A consortium of banks will provide a financial backstop to help provide an orderly winding down of the 158-year-old investment bank. And the Federal Reserve has agreed to accept lower-quality assets in return for loans from the government.

NY Times

[Iaato]

Naked Cap-NYT update

Sigh. Where's that Roccman? I concede. He wins. One silver dollar, or bragging rights if he's merciful. You da' man!

[ReverseEngineer]

The Fed is trying to come up with a last minute plan to lend banks/brokers $50 billion to then lend to Lehman.

But the NY Times says Lehman is finished:

As a result, people briefed on the matter said late Sunday that Lehman Brothers would file for bankruptcy protection, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago.

Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, as its subsidiaries remain solvent while the parent firm liquidates, these people said. A consortium of banks will provide a financial backstop to help provide an orderly winding down of the 158-year-old investment bank. And the Federal Reserve has agreed to accept lower-quality assets in return for loans from the government.

NY Times

AKA Hank's bluff was called, and the Fed will loan money to the other banks while they try to sort out the mess.

Question is, who buys this ploy anymore? Its putting the taxpayer on the hook again, but everybody knows the taxpayer can't pay it. Its not going to restore confidence in the banking stocks, they will drop like a STONE on Monday in general trading.

Reverse Engineer

[DantesPeak]

Naked Cap-NYT update

Sigh. Where's that Roccman? I concede. He wins. One silver dollar, or bragging rights if he's merciful. You da' man!

If the NY Times is right, then I am also wrong about Lehman being bailed out. But the Fed did throw out that $50 billion bone to get them to buy it.

Hey Roccman, how much space is left in your shelter again?

[r101958]

An interesting article on this thread:


http://www.reuters.com/article/usDollar ... 7620080914

[Cid_Yama]

Bank of America (BoA) has turned its attention to a possible $200bn (£111bn) merger with Merrill Lynch after pulling out of talks to save Lehman Brothers.

It is understood that discussions surrounding the possible merger of BoA and Merrill began as a result of the weekend's conversations led by 100 regulators and senior bankers at the Federal Reserve Bank of New York's headquarters in downtown Manhattan.

BoA began negotiations with Merrill on Sunday morning, not long after it indicated it no longer had any interest in purchasing Lehman's assets.

link

[dorlomin]

This is being discussed in quite a number of other threads.

[Forney2008]

Would'nt Bank of America doom itself by taking on Merril Lynch as well as Countrywide before it? I know if I owned Bank or America's shares, I would sell right now on this news.

[DantesPeak]

Wow, some people are still saying a Lehman bankruptcy isn't so bad, just the same as an energy analyst I heard today on MSNBC saying the effects of Ike on Houston oil industry were not so bad.

Sept. 14 (Bloomberg) -- Lehman Brothers Holdings Inc. prepared to file for bankruptcy after Barclays Plc and Bank of America Corp. abandoned talks to buy the U.S. securities firm and Wall Street prepared for its possible liquidation.

Lehman and its lawyers are getting ready to file the documents for bankruptcy protection tonight, said a person with direct knowledge of the firm's plans. A final decision still wasn't made, though none of the other options being considered appeared to have much standing, the person said, declining to be identified because the discussions haven't been made public.

Bloomberg

[Cid_Yama]

This is the beginning of the end. The whole shebang is about to fall because the US can't control what the rest of the world does to protect itself.