Lehmans

mystic_trev

Trollfever wrote: »

They could sell the houses and live in the Ferraris.

They'll be plenty of those up for sale as well,probably at the price it costs to service it!

WTF?_2

mystic_trev wrote: »

They'll be plenty of those up for sale as well,probably at the price it costs to service it!

A profit opportunity for Mr B?

Generali

mystic_trev wrote: »

Peston was saying that basically the FED's had enough and is refusing to pump anymore Tax payers money into failing Banks.

I'm not entirely sure it is the taxpayers' money strictly speaking. My understanding (and I'm no expert) is that the money so far has come from the reserves of the Federal Reserve banks except for the nationalisation of FMx2 which has been paid for by the treasury.

mystic_trev wrote: »

If that's the case what's the Nikkei going to drop tonight? 1,000 points? And the FTSE tomorrow 500 ? You're the expert - looks like we're in uncharted territory!

If I knew that I'd be on the beach in Barbados playing 'hide the sausage' with the Johanssen twins rather than posting on here! I suspect the US Treasuries market is really going to be the one to watch over the next few days. Losses may not appear as spectacular in %age terms.

As ever, time will tell. Tokyo and Sydney both open for actual trading (rather than order inputting) in about 5 hours so there's not long to wait (although I for one will be sleeping).

posh*spice

Using the bankruptcy word on Bloomberg now:eek::cool2:

sabretoothtigger

mystic_trev wrote: »

They'll be plenty of those up for sale as well,probably at the price it costs to service it!

I read classic car business is doing very well with prices high. No capital gains tax is payable on cars


Also read US national debt doubled with the FNM decision. Is soros invested in lehmans?

amcluesent

Who will the short-sellers turn on next? I can't recall which of the banks haven't done a rights issue or otherwise recapitalised.

mr.broderick

!!!!!!? wrote: »

A profit opportunity for Mr B?

Very true especially classic cars !!!!!!, no capital gains on them

mr.broderick

sabretoothtigger wrote: »

I read classic car business is doing very well with prices high. No capital gains tax is payable on cars


Also read US national debt doubled with the FNM decision. Is soros invested in lehmans?

Nice post.

mystic_trev

Sept. 14 (Bloomberg) -- A group of banks and brokers began preparing for a potential Lehman Brothers Holdings Inc bankruptcy filing today, addressing outstanding trades that the company has in over-the-counter derivatives markets.

Financial firms have started ``netting'' Lehman trades on credit, equity, interest-rate, foreign exchange, and commodity derivatives, according to a statement from the International Swaps and Derivatives Association e-mailed to Bloomberg News.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeWvsWPyOd1c&refer=home

and Torygraph

Barclays, whose negotiating team is led by Barclays Capital chief Bob Diamond, is in the process of informing Lehman and the Federal Reserve Bank of New York that it no longer wants to take part in the discussions because of the US government's unwillingness to guarantee Lehman's assets.
Although Barclays is understood to be happy that the New York Fed was leading discussions for Lehman's $41.8bn of troubled property assets to be ring-fenced, it is unhappy with the fact that its balance sheet would still be exposed to all the remaining counter-party and other risks within Lehman.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/15/bcnbarc115.xml

worldtraveller

Friends in the U.S., as here, are just in a general funk not knowing what is going to happen tomorrow (or later today, in time difference terms). Unless people are short or in puts, then they want a deal to be done, but are fearful of the consequences.

It is, probably, a lose/lose situation. If there's no deal then it's likely to be armageddon in the morning; if a deal's done, then a short term spike followed by who knows what.

The U.S. Government can only sponsor a deal by printing more money and it loses a chance of drawing a line in the sand! There are, after all, much bigger rumours of trouble ahead, AIG and Merrill Lynch to name but two of many.

What will happen if they blow up?