Lehmans goes down, global banking in crisis

[durruti02]

Rumours are flying around, maybe after a speech by ex IMF chief , that a major global bank is about to blow up .. any ideas news info?? the general idea is it is Citigroup but some are saying Lehman Brothers


" .. The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned.

Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised.

Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods".

"I would even go further to say 'the worst is to come'," he said.

"We're not just going to see mid-sized banks go under in the next few months," said Mr Rogoff, who held the IMF role between 2001 and 2004.

"We're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks." .."

http://news.bbc.co.uk/1/hi/business/7569903.stm

 

[Belushi]

Wasnt there talk of USB being in trouble recently?

 

[Dan U]

Rumours are flying around, maybe after a speech by ex IMF chief , that a major global bank is about to blow up .. any ideas news info?? the general idea is it is Citigroup but some are saying Lehman Brothers

do you work in the City then?

also that speech could be entirely speculative. Bit like someone saying in a speech they predict the downfall of capitalism by christmas.

 

[Kanda]

It's not hard to find out who this could be. (apparently )

 

[weltweit]

Waiting and watching here ..

They were never supposed to gamble with the money! its not Vegas!

 

[Kanda]

Wasnt there talk of USB being in trouble recently?

I don't think it's a PC Peripheral port or the well known bank UBS

 

[fubert]

Wasnt there talk of USB being in trouble recently?

Do you mean UBS ?

If you do, yeah, they're well fucked. Lost billions last year. Currently losing 3.9million Swiss Francs per day. Stocks gone down from 30 something to about 19 Francs too.

and i'm not laughing cause my boss bought shares at 32

 

[Belushi]

I don't think it's a PC Peripheral port or the well known bank UBS

I should committ hari-kari now shouldn't I?

 

[London_Calling]

An ex IMF economist now academic is presumably good at explaining what has happened - what's his track record on what will happen?

Think I'll wait for, for example, Mr Soros.

 

[g force]

He's a bit late no? Seeing as Bear Sterns has already gone.

And how many mid-sized banks have actually gone? None (discounting the potential Satander takeover of A&L)

 

[coccinelle]

I should committ hari-kari now shouldn't I?

Don't you mean hara-kiri?

 

[rioted]

They were never supposed to gamble with the money! its not Vegas!

What's a risk if it's not a gamble?

Or have I missed something?

 

[durruti02]

do you work in the City then?

also that speech could be entirely speculative. Bit like someone saying in a speech they predict the downfall of capitalism by christmas.

er no! lol i just like to see the bad guys get screwed ..

and er yes the speech is obviously speculative .. by definition until something happens it will be speculative .. but he seems like the sort of guy who would know

 

[Kanda]

Surely if he knows something like that due to factual information he has, he wouldn't be allowed to actually speculate publicly like that. It's insider knowledge.

That's the reason I can't comment on here who I/we think it is

 

[fubert]

Ah. It says "US Bank" so guess it's not UBS then.

 

[Mitre10]

I would think that whoever it is will be trying very hard to keep it from becoming public knowledge. Once the rumours get into the public domain these things have a habit of becoming a self-fulfilling prophecy.

Having said that, my guess would be Wells Fargo for a variety of reasons.

.

 

[Mogden]

I wouldn't be surprised if Citi tanked. Apparently they've properly taken over since I left Egg and morale is at an ever lower low which I didn't think was possible.

 

[kyser_soze]

An ex IMF economist now academic is presumably good at explaining what has happened - what's his track record on what will happen?

Think I'll wait for, for example, Mr Soros.

About as good as any IMF/WB Harvard economist. He got the post-9/11/dotbomb recession bang on, but he was way off on the Asian Currency crisis back in the 90s (IIRC he said that their economies would be 'mired' for at least a decade).

I would *speculate* that it's Citi. But then that's little more than Mr Rogoff speculating how bad things might get in the US...

 

[quimcunx]

It's not hard to find out who this could be. (apparently )

By PMing you?

 

[FabricLiveBaby!]

I'm actually REALLY suprised that HBOS are still going.


(OK, so it's not an American bank, but ti's kind of relavant)

 

[pk]

some are saying Lehman Brothers

That's what I heard from a very reliable source today...

 

[Kanda]

By PMing you?

You for one know I can't

 

[gnoriac]

It's been a few years since I worked in banking but even there was a major panic with all the dealers being told on a Friday to sell everything that Lehmann Bros had a finger in, cos they wouldn't be around by Monday (OK, slight hyperbole but that was how seriously they viewed it). So maybe LB have been living on borrowed time for a long long while.

 

[Kanda]

We pulled out of Lehmans in November under similar circumstances

 

[Badgers]

Get Your Money Under Your Mattress And Stock Up On Cans Of Beans Ffs!!!!!

 

[kabbes]

I've just been the worst kind of panicmongerer and moved my Egg savings. Doesn't really seem worth risking not having access to them for a while for the sake of a poxy 0.5% per month in interest.

 

[hipipol]

Looks like Lehmans - CITIC is denying they were offered 50% of the banks equity earlier this week - usually a sign of it actually having happened.
The Fed has stepped in to "quell rumours" apparently.
At first I thought it might be Wachovia, a minnow globally but huge in the States
Oh my, bet they wish Amex still owned them

 

[lights.out.london]

If Citigroup or Lehmans collapse, or are allowed to collapse, I will stand naked in the Broadgate for a whole Friday afternoon.

 

[Mitre10]

If Citigroup or Lehmans collapse, or are allowed to collapse, I will stand naked in the Broadgate for a whole Friday afternoon.

Quoted just in case

 

[Lemon Eddy]

I've just been the worst kind of panicmongerer and moved my Egg savings. Doesn't really seem worth risking not having access to them for a while for the sake of a poxy 0.5% per month in interest.

Just remember, no more than £35k in any one account, and always check who the parent is (i.e. Intelligent finance and hbos count as one and the same for fscs)