Lehmans goes down, global banking in crisis

[FridgeMagnet]

If its blame you are looking for you should start with the voters in the UK and US who have consistantly voted for well presented fluff on the right and left, over serious fiscal conservative (the right) or social reformers (the left).

People choose where they get there news from and most choose infotainment about celebrities and hordes of imigrants over more fact heavy, neutrally balanced sources.

Well, no, actually, I would put far more blame on people who knowingly make substantive decisions regarding investment and the movement of capital rather than people who affect the system about sixth- or seventh-hand, and even then, in practice have the choice between supporting the pro-business neo-liberals or the pro-business neo-liberals.

 

[elbows]

Whoa maybe they will let them collapse after all, as there are now stories about a trading window being opened up this evening so that banks can reposition themselves in the event of Lehman filing for bankruptcy. Only they get to do it in advance, and then if Lehman dont file for bankruptcy by midnight New York time, then the trades are undone, as if they never happened.

http://www.guardian.co.uk/business/2008/sep/14/lehmanbrothers.barclay

 

[newbie]

sorry , but thats not the case- the vast majority of city employees have as much say in how the company works as do the employees of comet - they are still workers and an admin job in a bank is just another admin job, albeit likely higher paid - IME , its not just the greedy who do it, but it is an arena where the truly greedy can potentially make a mark - most cant be arsed

tbh I'd be more inclined to accept your assertions about the innocence of the majority of city workers if a few actually took responsibility. They could look back to the bankers in 1929 for a lead- there's a ledge, get out on it and jump!

 

[zoltan]

pfft

Im sorry to have to say, but you dont know what yer on about - the relative few who actually make and sanctions the decisons you mention will be OK in the long run - would you blame a clerk in a council planning office for the collapse of the housing market ?

We/ most of us all participate in the system - to various degrees - its a trade off between own moral standpoint/ lack of and survival by doing the least work for the best reward

 

[newbie]

that's right, anybody outside doesn't know what they're talking about and so those on the inside can make excuses, deny all responsibility and pretend it's all just a fact of life. It would be funny if it wasn't so tragic.

 

[bi0boy]

It seems BoA has given up on Lehman in favour of better pickings at Merrill Lynch

http://www.reuters.com/article/newsOne/idUSPAR47323220080914

 

[quimcunx]

Can I put a ton on it being Lehman Brothers?

 

[bi0boy]

Can I put a ton on it being Lehman Brothers?

i'll give you 10,000 to 1 on.

 

[zoltan]

so the people in the city are not responsible? it's the staff at Comet and the voters and people who're into infotainment and well, anybody else except the ones who did the actual gambling with other people's money.

basic economics - the city has produced wealth that allows the emploees of comet to sell more goods to people who have more money to spend

This is the system - this is how it works - whether you / i agree with that system is an irrelvance in this case - the banks are culpable obvously, but most people have been willing partipants down the line - down to the buyers at comet sadly

comet will have extensive FX positions and a host of other tools to exploit the market for their own hopeful gain - as have most big employers in all fields

 

[FridgeMagnet]

None of us live outside of the system.

But some of us are bigger cunts than others.

 

[zoltan]

lalalalalalala

 

[FridgeMagnet]

IM am sorry you think Im a cunt - all im trying to do is add some perspective to the discussion from experience, without advocating any support or unreasonable defence - I try not to be a tool of internation capital when I can possibly help it

I didn't call you a cunt

 

[zoltan]

oh

sorry

 

[david dissadent]

link

Merril and BoA may be about to merge.

Trading floors are opening on Sunday to deal with Lehman.

My question is what will happen with the loans made to Lehman by the Fed (through the term auction facility) and all the MBS' and CDO's held by Lehman. Im assuming they will be sold setting a market price for them.

Things may get interesting.

I also wonder what will happen with all the CDS'? So much has been written about them. We could be about to find out over the next couple of weeks.

 

[pinkychukkles]

Well, shit on a brick - hang on to your coat tails, tomorrow's going to be one helluva ride

 

[Jazzz]

*The Federal Reserve is technicaly a private company and not part of the government.

There is nothing 'technical' about it - it is a private company. It makes vast profits which have nothing to do with the American people. It is owned by a secretive consortium of banking interests.

 

[Jessiedog]

Lehman.

Chapter 11.




Woof

 

[AnnaKarpik]

Well, they're all about globalization, aren't they? I don't think there are really very many nationalist / protectionist types working in the markets...

Heh, I used to work next door to Lehmans...

I used for work for them.

 

[AnnaKarpik]

It should have been 1000:1. my typo error

I cant gloat over anyne getting das boot is what Im saying, but you would hope that a decnt city wage for a long timewould make the consequeness of redundancy less immediate

ETA: I managed to get my lot a years salary pretty much when it went tits up, but that was under threat of a highly embarrasing court case.The City does have more cash swilling about that most other areas

What?

 

[Mogden]

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

*books train ticket for a couple of weeks time*

What are the chances it will be saved now then after a Chapter 11? I mean that's a helluva chunk of funds they've got to sort out.

 

[Badgers]

Over 25,000 employees, with about 5,000 in the UK.

Gonna be a busy day trying to unpick some of this mess

 

[A Dashing Blade]

"Carnival atmosphere" on Merrill's floor I'm being told

 

[shagnasty]

The opinion is that a couple of other banks are shaky the sponsor of man utd are one so they say

 

[pinkychukkles]

AIG aren't a bank, they're an insurer - but you are correct in that they have been marked as being in difficulties. Perhaps Man U will be playing in sponsor-less shirts like West Ham this weekend .

 

[lenny101]

More bankers on the dole. Shame.

 

[Andy the Don]

"Carnival atmosphere" on Merrill's floor I'm being told

Shades of the decadence of the last days or Rome or maybe the Fuhrer bunker Berlin spring 1945..??

I fear that this will not be the only investment bank to go under. Lehman management have used the lack of transparency in international accounting rules, the prime reason for this mess IMO, to hide sub prime losses in off balance sheet vehicles from credit committees and shareholders. This works whilst the sun shines, but as we are now seeing can collapse like a house of cards should the full extent of the possible losses/write downs from these off balance sheet vehicles be known.

 

[zoltan]

"Carnival atmosphere" on Merrill's floor I'm being told

Theyve been bought by BoA innit?

Big pay offs afoot for many

 

[zoltan]

What?

The Sack

 

[Badgers]

"Carnival atmosphere" on Merrill's floor I'm being told

Be interesting to be a fly on the wall in a lot of offices today.

 

[rennie]

Poor sods who work for Lehman Bros in London.