Lehmans

poppy10_2

mystic_trev wrote: »

I wonder how many of Lehmans 4,000 UK staff have large (heavily mortgaged) piles around central London.

Ah yes, I feel so sorry for the poor dears:

Lehman Brothers in $8.7 billion bonus payout
The Times, December 14 2006

Lehman Brothers said it would pay its average member of staff $335,441 (£170,933) this year as it reported a record fourth-quarter profit of $1.0 billion, capping its most profitable year ever.

The US investment bank is paying its 25,936 staff a total of $8.7 billion in salary, bonuses and other benefits for 2006 on the back of a 23 per cent rise in net income.

Lehman was not alone in announcing a record year for profits and bonuses this morning.

Bearn Stearns, the US investment bank best known for packaging home loans into mortgage-backed bonds, reported its highest ever quarter in the three months to November 30, chalking up a 38 per cent rise in net income to $563 million. It handed its 13,500 staff an average of $321,740 in salary, compensation and other benefits for the year.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article754348.ece

Generali

poppy10 wrote: »

Ah yes, I feel so sorry for the poor dears:


http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article754348.ece

It depends if you measure the median or the mean. I'll bet that the median bonus is a long way below the mean one.

Woby_Tide

it's happening already, the markets are virtually dead as everyone has shut up shop to prevent anything from settling whilst they put in preventative measures. Unprecedented stuff in my knowledge, I've never seen a complete shutdown like this before in all my time here

fatpig_2

It's not all bad. You can't just have banks getting away with their irresponsible lending for so many years and then getting saved at the last minute with taxpayers cash. There has to be moral hazard. Okay so we''ll all 'suffer' in some way. But some more so than others like the City fat cats.

The bright side is it'll bring house prices down even further. :T And this is the House Prices forum after all.

Generali

fatpig wrote: »

There has to be moral hazard.

There has been moral hazard as owners have been wiped out in NRK's case. I think depositors should have taken a hit too as it would focus minds a little and after all, they provide (even in these days of securitization) most of the money that is lent.

Woby_Tide

c.7-9 banks close to failure over next 24 hours

GDB2222

fatpig wrote: »

It's not all bad. You can't just have banks getting away with their irresponsible lending for so many years and then getting saved at the last minute with taxpayers cash. There has to be moral hazard. Okay so we''ll all 'suffer' in some way. But some more so than others like the City fat cats.

The bright side is it'll bring house prices down even further. :T And this is the House Prices forum after all.

If the banks fail, food riots start 48 hours later.

Edit: 24 hours later?

ManAtHome

Generali wrote: »

There has been moral hazard as owners have been wiped out in NRK's case.

Although at last one 'owner' got out before his bails were whipped off... Suspect the 'masters of the scamiverse' at lehman et al won't be worrying too much about the gas bill either.

WTF?_2

Looks like the limit of the Federal Reserve has been reached.

It's probably not that they won't bail out Lehman - more like they can't (for whatever reason)

And of course, if they can't bail out Lehman then they are unlikely to be able to bail out the other banks who collapse in a Domino effect.

Now what we need to know is, which other banks have most exposure to Lehman?

Generali

GDB2222 wrote: »

If the banks fail, food riots start 48 hours later.

Edit: 24 hours later?

Why would that be? Presumably most supermarkets have 24 hours worth of food on their shelves.

I can see that if diesel supplies fail but not banks.