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Will Lehmans be the next brokerage to fail?

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posted on Mar, 17 2008 @ 10:22 PM
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Bear Stearns is toast. But the problem is still big and able to take out more financial services entitites.

www.marketwatch.com...


NEW YORK (MarketWatch) -- Analysts who cover broker Lehman Brothers Holdings Inc. watched closely from the sidelines Monday, loath to add to market speculation that the firm may be the next major brokerage to falter.
Maintaining investor confidence will be key to keeping Lehman afloat, at least for now, according to BMO Capital Markets analyst George Lazarevski.
"Similar to Bear Stearns, the greatest risk for Lehman Brothers is the risk that once speculation begins, it becomes a self-fulfilling prophecy, and no level of liquidity will be sufficient," he told investors Monday.
Lehman Chief Executive Richard Fuld said the Federal Reserve's decision to start lending directly to brokerage firms improves their liquidity. The Fed usually lends directly only to banks, but the central bank widened its reach in a historic move on Monday to include brokerages such as Lehman as well.


Please visit the link provided for the complete story.


The underlying problem - which is mortgage defaults - is still big and growing. We have no guarantees that the problem won't spread to more banks and brokerages heavily invested in mortgage securities - many of which were overvalued with triple A ratings when the underlying mortgage paper was sub-prime and/or Alt-A.

Do you think Lehman's is the next domino to fall? Any more banks and brokerages on the failure list?




posted on Nov, 8 2009 @ 11:54 PM
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Do you think Lehman's is the next domino to fall? Any more banks and brokerages on the failure list?

Nope I dont think Lehman's will fall I think it will decrease in a sense that he will be a bit worried and people will start to panic. But fore sure if it reaches t that line the government will surely help it out.


regards,
rochelle
Simulation prĂȘt



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