Lehmans

Californication

No one knows yet. But there has been an ISDA netting auction today for what happens if LEH goes tits up. The Bloomberg article has details.

--C

posh*spice

Bloomberg still talking of Merrill merger.....BBC sees only Chapter 11 for Lehman

experience08

ad44downey wrote: »

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.

Barclays have no money! They have just shored-up their balance sheet with a begging bowl, they have no leeway!

posh*spice

Jeeeez - who'd have thought it would ever come to this:undecided

Californication

Californication wrote: »

No one knows yet. But there has been an ISDA netting auction today for what happens if LEH goes tits up. The Bloomberg article has details.

--C

To clarify, this is just dealing with what happens to existing Lehman trades if they fail, it's not a sale auction for the firm.

--C

Californication

posh*spice wrote: »

Jeeeez - who'd have thought it would ever come to this:undecided

Up until the bail-out, people thought Bear might fail; that's why the money markets went nuts. See what happens tomorrow AM.

--C

posh*spice

True - I'm off guys - but does sound like thre will be blood everywhere in the morning.:cool2:

TTFN

Posh

GDB2222

Californication wrote: »

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

I think this is going to affect us all.

Generali

baby_boomer wrote: »

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?

We'll see what happens I guess.

One thing is certain, the losses won't just disappear in some incredibly handy way. Someone will have to lose money as a result of this.

poppy10_2

ad44downey wrote: »

Merrill Lynch is odds on to be the next target.

O HI

http://dealbook.blogs.nytimes.com/2008/09/14/bank-of-america-in-talks-to-buy-merrill-lynch/index.html?hp

Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.

The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night.