Lehman Brothers Collapse “Like a Massive Earthquake” Sep 15

Sep 15, 2008.
The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch — two pieces of news that profoundly alter the American financial landscape.

The fast-paced changes capped a roller-coaster Wall Street weekend and threatened to stir up U.S. financial markets already reeling from woes at other major financial firms and mortgage financing titans Fannie Mae and Freddie Mac.

“This crisis is clearly deeper than anybody had imagined only a short time ago,” Peter Stein, an associate editor at The Wall Street Journal in Asia, told CNN.

Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate — the value of its shares declined 94 percent this year.

The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators, who worked around the clock to come up with a solution to a still-unfolding financial crisis.

By the end of the weekend, the Federal Reserve had stepped in to try to calm the markets by announcing plans to loosen its lending restrictions on the banking industry.

A consortium of 10 leading domestic and foreign banks agreed to create a billion fund for loans to troubled financial firms.

Source:

http://edition.cnn.com/2008/US/09/15/banks.bigchanges/index.html

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Sep. 15, 2008.
Global markets were reeling Monday after a convulsive day on Wall Street that saw a leading U.S. investment bank file for bankruptcy and other institutes scramble to merge as the credit crunch claimed one of its biggest victims yet.

Stock prices plunged in Asia and Europe in the wake of investment bank Lehman brothers announcing its collapse and Bank of America’s billion buyout of ailing brokerage Merrill Lynch.

This crisis is clearly deeper than anybody had imagined only a short time ago,” Peter Stein, an associate editor at the Wall Street Journal in Asia, told CNN.

The Dow Jones Industrial Average fell 330 points or 2.9 percent to around 11091 in early trading. In Europe, FTSE index in London declined 3.37 percent while the Paris CAC 40 was down 4.47 percent.

Major Asian indexes were closed but India’s Sensex fell 5.4 percent, Taiwan’s benchmark dropped 4.1, Australia’s key index dropped 2 percent and Singapore fell 2.9.

The turmoil followed a roller-coaster weekend for a Wall Street already concussed by woes at other major financial firms and mortgage-financing titans Fannie Mae and Freddie Mac.

At one point the U.S. Federal Reserve was forced to step in, announcing plans to loosen lending restrictions to the banking industry in an effort to calm markets, while a consortium of 10 leading domestic and foreign banks agreed a billion fund to lend to troubled financial firms.

In an effort to calm market jitters, the European Central Bank on Monday said it has pumped .6 billion into money markets. The Bank of England in London also took steps, offering nearly billion in a three-day auction.

Source:

http://edition.cnn.com/2008/BUSINESS/09/15/lehman.merrill.stocks.turmoil/index.html#cnnSTCText

25 thoughts on “Lehman Brothers Collapse “Like a Massive Earthquake” Sep 15

  1. why was bear stearns (the world’s 5th largest investment bank) too big to
    fail, so the government help JP morgan bank buy it, but Lehman Brothers
    (the world’s 4th largest investment bank) is allowed to fail?? Smells
    funny. I think both, along with fannie and freddie should all fail; in a
    real free market society.

  2. they are not unemployed they have no where to go now! who is gonna hire
    them all?NO ONE! We are fucked seriously.. the warrants from Lehman will
    definitely becomes toilet papers…Asia Markets will fall dramatically
    tomorrow as Bankers all taking money back to the state. it was a holiday in
    Asia yesterday and sure they will be panic and throw everything out!!
    Americans,McCain or Obama either one becomes the president, they are fucked
    and so is everyone else. u better start praying now

  3. Go get a real job you bloodsucking bastards They should be made to toil in
    the sun from sunrise to sunset lazy prepy sons of bitches

  4. this well educated executives make 2 to 300 thousand a year! For years they
    were doing bad loans and deals and not of them noticed! send them to
    guantanamo!

  5. You are all talk and no action, every last one of you PATHETIC!. All you do
    is moan about the bankers, the Fed, ECB Politicians etc etc none of you
    take any responsibility. Albert Einstein once famously quoted that its not
    the evil doers who are the most dangerous, but those who sit by and do
    nothing. All of you are full of shit. America deserves whats coming for
    sitting on your FAT ASS HOLES WATCHING MOVIES, STUFFIN YOUR FAT FACES WITH
    MACDONALDS. YOU ARE PATHETIC CAPITALIST HUMAN BEINGS.

  6. bravo mr BUSH & MC CAIN to finish off the country, by supporting greedy
    business and showing a deep weakness and confusion, anyway BIN LADEN is
    laughing, and whole AL QUAEDA is celebrating big deal.

  7. Your forefathers would be ashamed of you as Americans. Apathy is
    disgusting. March up to Capital Hill and smash the fucking doors down,
    indict all those who you blame, smash the elite organisations and FIGHT
    BACK YOU BUNCH OF AMERICAN WIMPS. moan moan moan moan, you are all pathetic
    creatures. You deserve to homeless

  8. Now im hearing that AIG is to be put into conservatorship???? FUCKING
    DISGRACE. Profits have been privatised and losses at the American taxpayers
    expense. IM SOOOOO MADDDDD!!!!!! Insurance companies gambling with
    insurance premiums, they lobbied for self regulation and the US government
    let then do what they want. These people should be turned over to the Hague
    for economic war crimes. INDICT EVERYONE

  9. this america aint it take a look this is what u created but now the shits
    about to fall i’ll be damn if i goin down wit yall

  10. I think this will not happen if Bill clinton is the president. US economy
    is strong in the 90s. Thanks to Bill Clinton.

  11. Yeah, we might make a good start by bringing our military personnel back
    from the 130 freaking countries where we have them arrayed so we can show
    the world how tough and strong we are, like a pimply fourteen year old
    drunk waving a gun around.

  12. CNBC reported that Fuld was attacked and “knocked out cold” at the Lehman
    Brothers gym due to Lehman’s declaration of bankruptcy.

  13. It will save trillions, actually. An overextended military was a primary
    contributor to the death of the Roman and British empires. We need to go
    back to being a great nation, not the biggest, baddest, meanest cop on the
    street.

  14. stepper 11 you need to research your countries behaviour. as an empire your
    country is directly connected to the deaths of countless people around this
    globe. your corporate owned media simply airbrushes it out.i love opinions
    i listen to them carefully,but i detest opinions based on total ignorance.
    so wake up and nudge awake the rest of your fellow countrymen wallowing in
    the same ignorance.

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