Lehmans goes down, global banking in crisis

[hipipol]

Forget the Lehamns stuff for a sec - Merrills going to arch investmant bank hater BoA? Expect a gradual leakage of Merrills people from their seconadary trading biz, they will prob keeep the retail securities distribution in the US, the asset management is already part of Blackrock, bloomberg holdings sold off - classic asset strip really
Many more bodies on the street
Ripping out the goodies Lights out is good, provided you can find a firm counterparty and I think thet'll be fairly thin on the ground - those that are will keep salaries low, fuck g'tees, and will go, where possible, direct - expect a hideous fee squeeze in my world

 

[STFC]

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

Please please please tell me you're a Kelly Brook lookalike?

 

[STFC]

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 .

They've approached the Federal Reserve for a $40bn bridging loan to "stave off the prospect of damaging credit downgrades that could force a liquidity crisis", according to the insurance press.

 

[hipipol]

It really beggars belief that these overpaid idiots actually assumed that changing the name to High Yield instead of the more honest "Junk", would somehow protect them from Drexel style meltdown
Bad case of the Emperors New Kit and almost all were suckered
Stand up Goladmans, you desrve the prize, one eyed you may be, but round these parts it makes you King

 

[Kaka Tim]

Poor sods who work for Lehman Bros in London.

Yeah. Tragic. I can barely type Im so upset for them.

 

[rennie]

You're being ironic right?

 

[pk]

Told you it was Lehman Bros.

Nearly a month ago. Post #21.

 

[kyser_soze]

Yeah. Tragic. I can barely type Im so upset for them.

Yes, because the only people to get the heave were investment bankers and brokers. No admin or support staff at all.

I love Urban when stuff like this happens.

 

[A Dashing Blade]

6 very large hedge funds (two of the almost household names) on counterparty watch at my place. This means you can only trade vanillla products with them. Trouble is, of course, that those funds don't trade vanilla . . .

 

[rennie]

TCI by any chance?

 

[lights.out.london]

Blimey.

A contact says he's been told to forget September's salary. Lights out in Broadgate by the weekend; everyone finished.

Kidding aside about the candidate pool, this very worrying.

Jeepers.

 

[lights.out.london]

~ salary at lehmans, I meant to say.

 

[kyser_soze]

My ex-wife was a PA at Lehmans and was made redundant on Monday last week...

 

[Maggot]

The UK govt's response to the whole affair has been incredibly slow and naive. Even worse, given we have 'prudent' Gordon the ex-Chancellor as PM.

How should the govt have responded?

 

[zoltan]

Yes, because the only people to get the heave were investment bankers and brokers. No admin or support staff at all.

I love Urban when stuff like this happens.

yup

 

[hipipol]

Forget the MBS/ABS traders and underwriters who have fucked things, there are tens of thousands of people who work in supporting businesses who are gonna get it in the neck from this
Thats everything from sandwich bars, pubs, etc to cleaners, builders - you name it

All in all a bad day
Tomorrow will be worse - I start a new job - for a start up recruiter in financial markets!!!!!

Hahahahahah, maniacal laughter, etc

 

[TopCat]

How should the govt have responded?

I think some want taxpayers money to be used to bail out the poor financial state of the failing institutions. Others don't! I say this as one who just got made redundant...

 

[PacificOcean]

Chapter 11 isn't the same as going under though is it?

Cable company NTL filed for it and is still going seven years later.

 

[Belushi]

I think some want taxpayers money to be used to bail out the poor financial state of the failing institutions. Others don't!

If I spunked all my money at the bookies the Treasury wouldnt bail me out.

 

[TopCat]

Lehman in the UK have been put into administration. Forget marking to market, the actual fire sale of its assets will set a benchmark for the rest.

 

[TopCat]

If I spunked all my money at the bookies the Treasury wouldnt bail me out.

Just to clarify, I think they should get not one penny of support.

 

[kabbes]

I feel sorry for anybody that loses their job, even if that job is being an investment banker. People aren't immune from my sympathy when they go through a personally tough time just because other people are more deserving of that sympathy. I have enough sympathy to go round.

 

[Andy the Don]

I think some want taxpayers money to be used to bail out the poor financial state of the failing institutions. Others don't! I say this as one who just got made redundant...

I fear we could be getting to a stage where losses are nationalised and profits privatised. Central government must not let this happen. If they do recuse banks due to bad sub-prime loans there must be furtehr government regulation of the sector. What annoyed me was that the CEO of Frannie Mae or Freddie Mac got a $23m payoff when the Fed stepped in last week.

 

[Sunray]

Thats pretty scary. They not so long ago built a large tower block in Canary wharf, sans 13th floor. Didn't help them.

Dunno how many people work there, but its got to be quite a lot.

I was reading that its not just the sub-prime that has caused this, slighty too loose lending policy to everyone rather than just the so called 'sub-prime'. This allowed the US consumer to see that their house had increased by $20,000, getting a re-mortgage and then spending it on shit, turning them from sound borrower to sub-prime in a few years. Madness.

I don't think the waves of this have even started to crash against the shores of the UK. The edge of the storm is approaching and the waves are starting to build up but I really don't know what the fall out of that is?

The US Fed reserve is starting to become Atlas to the world financial system and I am not sure that they are able to do any more. I think they are starting to realise that their task is a bit like King Kanute, the magnitude of the problem is so huge.

 

[Badgers]

A contact says he's been told to forget September's salary. Lights out in Broadgate by the weekend; everyone finished.

That is bloody quick if he is right...

 

[hipipol]

Predents

Both japan and Sweden faced clooapsing banks wieghed down with useless debt - Japan is closest to the current problem as most of their banks got caught by the Tokyo proerty bubble
The Govt can either nationalise and forse megerers, or simply tell em to merge or they'll let em fall
Sweden chose the first
Japan the latter

 

[paolo]

Roughly 4000 at Lehman in Canary Wharf I'd guess, maybe a little more. I'm going to wander over during lunch and gawp at the car crash.

 

[fogbat]

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

Requoted

 

[lights.out.london]

That is bloody quick if he is right...

Came from a reasonably senior source. Says the building will be vacated by Friday.

Requoted

Thank you, fogbat. remind me to do you a favour, sometime. Anyway. Early days yet. Let's see where we are when the dust settles.

*still amazed at Fed not bailing them out*

 

[hipipol]

Oh well

It'll be possible to get a seat on the Junilee line next week then