Lehmans

Nikkster

XL's West Ham connection
http://news.bbc.co.uk/1/hi/business/7613351.stm

Not so indirectly linked to Landsbanki

Paul_N_4

chucky wrote: »

i'm not disagreeing what you're seeing in the media but Lehmans have made all their obligatons today - because these are all planned from close of business on Friday.

read the headline then read the first paragraph

http://news.bbc.co.uk/2/hi/business/7615931.stm

will they pay everyone tomorrow, i doubt it.

that's when they'll file for bankrupcy, once New York or before opens that's when the actual confirmation will happen. lot's of speculation and assumption at the moment.

Bankruptcy filed: http://blog.rebeltraders.net/wp-content/uploads/2008/09/show-case-doc.pdf

WTF?_2

RecoveringAlcoholic wrote: »

Can I predict The Icelandic Banks within the next 24 weeks?

Not too sure about the Icelandic banks.

They are well capitalised and don't have US sub-prime exposure.

The rumours surrounding them are linked to the fragility of the overall Icelandic economy rather than them specifically, is my understanding.

Generali

GDB2222 wrote: »

The latter, but that surely follows from the former. My point is really that the banks cannot be allowed to go insolvent en masse. One or two is maybe not such a big deal, but you saw what happened with Northern Rock. The large banks are very interlinked, so I couldn't see Barclays surviving if HBOS failed, or vice versa. I don't think it's far-fetched to say that a failure of the clearing banks in this country would lead to food riots and martial law being imposed. The obvious thing to do, to avoid that, is simply to declare the banks solvent.

I don't think you can make a distinction between banks becoming insolvent and the payments system breaking down. Say I bank at Barclays, which is insolvent. I turn up at your supermarket and present my Barclays debit card. You accept the transaction, give me my food, and you now are owed money by an insolvent bank. Wouldn't you just rather hang onto the food?

Lehmans is really rather big to be allowed to go under. Of course, it's chapter 11/ administration, but it's all quite worrying, and you have to wonder which are the next dominos to fall.

The Bank of England would step in to run an insolvent retail bank to keep current and business accounts operating.

Trollfever

Bankruptcy filed: http://blog.rebeltraders.net/wp-cont...w-case-doc.pdf

Many thanks.
Schedule 1 makes very interesting reading.

worldtraveller

Footsie DOWN 3.7%

HBOS DOWN 20%
BB DOWN 10%
BARC DOWN 13%
RBS DOWN 13%

mystic_trev

This has just been posted.

In case you didn't know I work/used to work for Lehmans.

Didn't know what to expect this morning but turned up. Lots of TV cameras and employees outside smoking. Some contractors and temps packed up and went home but most people are hanging around. No one is allowed to trade, not even to hedge. People are mostly talking amongst themselves nervously and or talking to agents. Have heard conflicting reports whether we'll be paid this Friday.

I'm kinda bummed because I loved this place. I worked my @rse off this year and hoped to get rewarded for it. Many people are worse off though. Many have big mortgages. I know of several couples who both work here. If you are a big earner you get half your bonus in stock which takes 5 years to vest, so a lot of senior people have lost a few years salary. Some people are sponsored so will lose their UK work permit. We have had 4 new starters in the last 2 weeks, coming from big, stable banks.

No one is sure what is going to happen next. There was a rumour we'll all be kicked out of the building soon. I can't see how PWC can run this place on its own though.

The bad thing is most desks are doing OK. They have made money year after year, but we're taken down by other parts of the company. Most people thought we'd probably get taken over, no one really thought we'd get closed down.

WTF?_2

worldtraveller wrote: »

Footsie DOWN 3.7%

HBOS DOWN 20%
BB DOWN 10%
BARC DOWN 13%
RBS DOWN 13%

HBOS looking very dodgy - down 32% currently and dropping like a stone.

AIG in the states (large Insurance group) looking like a dead man walking.

GDB2222

!!!!!!? wrote: »

HBOS looking very dodgy - down 32% currently and dropping like a stone.

AIG in the states (large Insurance group) looking like a dead man walking.

HBOS!? Too big to fail?

Who'd have thought that AIG, which was the biggest insurance company in the world, could do this to themselves? Didn't they know about concentration of risk?

ad44downey

The market must know something about HBOS that we don't.

Is it curtains for HBOS? I suppose our tax would be used to prop it up if need be.