"Lehman Heads Toward Brink as Barclays Ends Talks"
"Lehman Heads Toward Brink as Barclays Ends Talks," see http://www.nytimes.com/2008/09/15/business/15lehman.html. Part of the article is after the next paragraph.
Also, see http://www.nytimes.com/reuters/business/business-lehman-specialsession.html, "Derivative Traders Open Session (A rare emergency trading session opened Sunday afternoon) to Reduce Lehman Risk." Here's a third article originally published Saturday, http://www.nytimes.com/2008/09/14/business/14spiral.html, "Wall St. Goliath Teeters Amid Fear of Wider Crisis."
"Unable to find a savior, the troubled investment bank Lehman Brothers appeared headed toward liquidation on Sunday, in what would be one of the biggest failures in Wall Street history.
The fate of Lehman hung in the balance as Federal Reserve officials and the leaders of major financial institutions continued to gather in emergency meetings on Sunday trying to complete a plan to rescue the stricken bank.
But Barclays, considered the leading contender to buy all or part of Lehman, said Sunday that it could not reach a deal without financial support from the federal government or other banks, making a liquidation more likely.
The leading proposal had been to divide Lehman into two entities, a “good bank” and a “bad bank.” Under that scenario, Barclays would have bought the parts of Lehman that have been performing well, while a group of 10 to 15 Wall Street companies would agree to absorb losses from the bank’s troubled assets, according to two people briefed on the proposal. Taxpayer money would not be included in such a deal, they said.
But that plan fell apart on Sunday, making it likely that Lehman would be forced to liquidate.
What remained unclear was how a liquidation might proceed. One option that was discussed on Saturday would have major banks and brokerage firms continue to do business with Lehman as it unwinds its assets and liquidates over a period of months, according to several people briefed on the discussions. That would buy Lehman time to sell those assets in an orderly way and avoid a fire sale that could depress prices of similar assets held by other banks."
.......http://www.JoeFRocks.com/
Also, see http://www.nytimes.com/reuters/business/business-lehman-specialsession.html, "Derivative Traders Open Session (A rare emergency trading session opened Sunday afternoon) to Reduce Lehman Risk." Here's a third article originally published Saturday, http://www.nytimes.com/2008/09/14/business/14spiral.html, "Wall St. Goliath Teeters Amid Fear of Wider Crisis."
"Unable to find a savior, the troubled investment bank Lehman Brothers appeared headed toward liquidation on Sunday, in what would be one of the biggest failures in Wall Street history.
The fate of Lehman hung in the balance as Federal Reserve officials and the leaders of major financial institutions continued to gather in emergency meetings on Sunday trying to complete a plan to rescue the stricken bank.
But Barclays, considered the leading contender to buy all or part of Lehman, said Sunday that it could not reach a deal without financial support from the federal government or other banks, making a liquidation more likely.
The leading proposal had been to divide Lehman into two entities, a “good bank” and a “bad bank.” Under that scenario, Barclays would have bought the parts of Lehman that have been performing well, while a group of 10 to 15 Wall Street companies would agree to absorb losses from the bank’s troubled assets, according to two people briefed on the proposal. Taxpayer money would not be included in such a deal, they said.
But that plan fell apart on Sunday, making it likely that Lehman would be forced to liquidate.
What remained unclear was how a liquidation might proceed. One option that was discussed on Saturday would have major banks and brokerage firms continue to do business with Lehman as it unwinds its assets and liquidates over a period of months, according to several people briefed on the discussions. That would buy Lehman time to sell those assets in an orderly way and avoid a fire sale that could depress prices of similar assets held by other banks."
.......http://www.JoeFRocks.com/
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
1:12 PM
1 Comments:
AIG (AIG) and WaMu (Washington Mutual, WM) might be in serious financial trouble. Their crashing share values are obviously a huge concern.
"WASHINGTON (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan on Sunday said he suspected "we will see other major financial firms fail," but it did not need to be a problem.
"It depends on how it is handled and how the liquidations take place," Greenspan said on the ABC program, "This Week." "And indeed we shouldn't try to protect every single institution. The ordinary course of financial change has winners and losers.""
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Joe Ferrazzano, at 1:50 PM
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