Corvette Forum : DigitalCorvettes.com Corvette Forums banner

1 - 3 of 3 Posts

·
Registered
Joined
·
7,277 Posts
Discussion Starter #1
On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies.


http://en.wikipedia.org/wiki/Lehman_Brothers


Causes

Subprime mortgage crisis & Short-selling allegations & Financial fallout & Ongoing litigation









Wall Street awakes to find Lehman Brothers, Merrill Lynch gone


Sept. 15, 2008


http://www.cbc.ca/world/story/2008/09/15/financial-meltdown.html



When Wall Street woke up Monday morning, two more of its storied firms had vanished.

Lehman Brothers, burdened by $60 billion in soured real-estate holdings, said it is filing for Chapter 11 bankruptcy after attempts to rescue the 158-year-old firm failed.

Bank of America Corp. said it is snapping up Merrill Lynch & Co. Inc. in a $50 billion all-stock transaction.

The demise of the independent Wall Street institutions came as shock waves from the 14-month-old credit crisis roiled the U.S. financial system six months after the collapse of Bear Stearns.

The world's largest insurance company, American International Group Inc., also was forced into a restructuring.

And a global consortium of banks, working with government officials in New York, announced a $70 billion pool of funds to lend to troubled financial companies.

The aim, according to participants who spoke to the Associated Press, was to prevent a worldwide panic on stock and other financial exchanges.

Ten banks — Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS — each agreed to provide $7 billion "to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."

The Federal Reserve also chipped in with more largesse in its emergency lending program for investment banks.
The central bank announced late Sunday that it was broadening the types of collateral that financial institutions can use to obtain loans from the Fed.

Federal Reserve chairman Ben Bernanke said the discussions had been aimed at identifying "potential market vulnerabilities in the wake of an unwinding of a major financial institution and to consider appropriate official sector and private sector responses."

Futures pegged to the Dow Jones industrial average fell more than 300 points in electronic trading Sunday evening, pointing to a sharply lower open for the blue chip index Monday morning.
Asian stock markets were also falling.

The stunning weekend developments took place as voters, who rank the economy as their top concern, prepare to elect a new president in seven weeks.
It likely will spur a much greater focus by presidential candidates — Republican John McCain and Democrat Barack Obama — and members of Congress on the need for stricter financial regulation.





Samuel Hayes, finance professor emeritus at Harvard Business School, said the Bush administration may get a lot of blame for the situation, which could benefit Obama.

"Just the psychological impact of this kind of failure is going to be significant," he said.

"It will colour people's feelings about their well-being and the integrity of the financial system."





(Read continue in Link)





The Lehman Bros. building Sept. 15, 2008.


 

·
Registered
Joined
·
25,253 Posts
Apparently nobody gives a ****. :spanked:
 

·
Registered
Joined
·
1,858 Posts
Apparently nobody gives a ****. :spanked:
Yea … 2008 never exited … and the Federal Defect is all Obama’s fault. :laughing:

Stupidity and memory loss is running ramped lately :crazy:
 
1 - 3 of 3 Posts
Top