Lehmans

WTF?_2

Here's a view that seems to be gaining momentum:

http://www.cnbc.com/id/26656750/site/14081545/?1

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.


Interesting that these views are now becoming somewhat mainstream instead of the domain of the 'Tinfoil Hat Brigade"...

Generali

sabretoothtigger wrote: »

No we've gone over this, they wont be nationalised or receive debt support that bears did. This is why barclays walked and they are right to do so

The alternative is insolvency if nobody will do business with them in the money markets. I just don't see the US Government letting that happen despite it being the right thing, probably.

There's some talk about splitting Lehmans into a 'good bank' and a 'bad bank'. Someone's still going to have to take the losses from the bad side no matter how you dice things.

"It's a big !!!!!! sandwich and we're all going to have to take a bite"

sabretoothtigger wrote: »

Is soros still an investor, is there any way to tell

Bloomberg lists the notifiable positions (those over a certain size - it varies by market). Presumably they get the information from the New York Stock Exchange or wherever it is that Lehmans is listed.

ad44downey

amcluesent wrote: »

Who will the short-sellers turn on next?.

Merrill Lynch is odds on to be the next target.

sabretoothtigger

I ask about soros because he declared earlier but I presume he could have sold up since then without us knowing?. The july dip has been exceeded recently and I presume he would have sold like anyone else though surely someone would know who he sold 3% or whatever it was, to

I just don't see the US Government letting that happen despite it being the right thing, probably.

I see it as a positive move, it has to stop somewhere. I dont expect the s&p500 to plunge but again this is just my guess

amcluesent

Would seem a good idea to move from 5% of assets in bullion gold to more like 20%. Rather quickly.

worldtraveller

Preparations being made in U.S. for insolvency protection for Lehmans according to the BBC (pretty obvious anyway).

If no new financing is found before Wall Street opens on Monday, Lehman will have to seek so-called Chapter 11 bankruptcy protection.

In the UK, accountancy firm PWC has been lined up to run the British operations of Lehman.

Generali

There is no way that Lehmans will just go bust. Unwinding the derrivatives contracts would finish off just about every financial institution worldwide.

Someone will be found to take on the liabilities of Lehmans in some shape or another. That someone may well be the US taxpayer.

Californication

Barclays and BOA have both pulled out...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aRc5IyxcHIbw&refer=news

http://www.bloomberg.com/apps/news?pid=20601103&sid=aiu6I5m66pcw&refer=news

--C

ad44downey

BBC News is saying Barclays and Bank of America have pulled out of discussions. But Sky News is rumouring that Bank of America is about to save Lehman Bros. I wonder who is right.

baby_boomer

The US government is signalling that it won't step in.

The BBC's Robert Peston sounds like he expects liquidation, in spite of Generali's observations.

PWC is said to be lined up and ready to go for the administration of the UK based assets.

Any guesses for the % falls tomorrow on the FTSE & Wall Street?