Lehmans

lostinrates

chucky wrote: »

. The UK operation was profitable because they managed a different asset class, US staff would have also worked for the UK profitable organisation too but would have been managed from London. these reporting lines are more transparent when working for these firms but look worse when viewed from the outside.

This is a very good point IMO. DH's firm is international and the European offices in partiacular have quite specific areas of work, but cover more than one country in a way we don't naturally imagine in our little island.

sabretoothtigger

I dont understand if the business was so big and parts have been bought then why are all staff now not needed. Seems such a waste to close everything down unilaterally

blackanchorage

I think most staff will be retained in the parts that are sold. Unless there's significant overlap with the buyer's operations. It's a platitude that "the firm's biggest assets are its employees", but it is true to some extent.

Regards

Sir_Humphrey

http://www.guardian.co.uk/business/2008/sep/19/europeanbanks.lehmanbrothers

You gotta laugh at that front page! :rotfl: :rotfl:

Generali

Sir_Humphrey wrote: »

http://www.guardian.co.uk/business/2008/sep/19/europeanbanks.lehmanbrothers

You gotta laugh at that front page! :rotfl: :rotfl:

I remember a few years ago, Deutsche took on a trainee bond trader. It was his first day so they were showing him how things worked.

Trainer: So we see what our position is in xx bunds
Trainee: 'kay
Trainer: Let's say for example we wanted to sell the entire position, not that we would of course, haha!
Trainee: ha
Trainer: Yes, well. We decide what price we want to put them into the market at say, EURxx each. As this is below the current market price, we'd expect everything to sell. Then you press that button to execute the order.
Trainee: What that one? [presses button]

He sent a sell order out and the bonds sold. They had to buy back the position. Cost them a few million I think and IIRC it even made the front page of The Sun.

Ted_Bloke

poppy10 wrote: »

Germany's foreign minister is demanding an urgent explanation from state bank KfW as to why it transferred €300million to Lehman brothers the day it went bust. The company is blaming a 'technical error' for the failure to stop the automated payment. It is unlikely that it will be able to recoup the lost money.

Oops!

KfW? :cool2: Why they were having problems from late last year through having had to take on too much American subprime mortgage debt, well before anyone was talking about it weren't they?

Not that I know anything much about finance of course.

luvpump

Ted_Bloke wrote: »

KfW? :cool2: Why they were having problems from late last year through having had to take on too much American subprime mortgage debt, well before anyone was talking about it weren't they?

Not that I know anything much about finance of course.

Nope I quite agree !!!

WTF?_2

Ted_Bloke wrote: »

Not that I know anything much about finance of course.

You've got a future in investment banking then!

All you need to know is that the dumber and more risky the deal, the more cash you will get for making it. And that the taxpayer will pick up the tab when it goes wrong.

Sorted.

ad44downey

Being an Investment Banker is the best job in the world.

Take a HUGE gamble, if it pays off, you get a HUGE bonus.
If it doesn't, it wasn't your money you lost anyway , and the worst that happen is you lose your job.

No wonder we're in the mess we are :T

ad44downey

That can't be true. That would mean there would be large numbers of people who work for investment banks who're only getting say 20 grand per year. That's way less than the average London wage so your assertion is rather preposterous. You'd get more driving a bus in London