U.S. Government Helping to Arrange Sale of Lehman Brothers

U.S. Government Helping to Arrange Sale of Lehman Brothers

www.washingtonpost.com

The Treasury Department and the Federal Reserve are engineering a sale of Lehman Brothers through a consortium of private firms. The details are not finalized, but sources familiar with the matter say the purchase is expected to be completed and announced this weekend before Asian markets open Monday morning.

(visit the link for the full news article)




Mod Edit - Headline: Please use the original story headline from your source.

[edit on 9/11/2008 by JacKatMtn]

BOOM

There goes another one.

According to CNBC's Fast Money there is also possible government backing to this as well.

I'm actually a little disturbed at how fast the snowball (or more explicit metaphor) is groing. I mean sheesh we just had a huge government backed bailout earlier this week. They are usually good for at least a week or two of stabillity.

www.washingtonpost.com
(visit the link for the full news article)

It is the cycle. All the empires fall, it's our turn.

[edit on 11-9-2008 by Reddupo]

The whole mess is disturbing in that the players in the game get to keep their profits private but then they are given a bailout with tax payer money essentially making their private debts a public debt. It is like communism for the ultra rich where the middle class mostly takes the hit for the debts of the rich but do not get to share in the profits when they are doing well.

It is flat out criminal corporatist elitist B.S.

reply to post by Reddupo


If the American empire falls it will without a doubt be because of idiotic moves by those who pretend to represent the people and for the common good.

Correct me if I am wrong here but isn't this the Socialism/Communism that most Americans rail against?

What I mean is isn't this just a form of Nationalization of the Companies in question?

THE link in the OP states the govt & fed are 'assisting or helping'
Leahman explore the breakup... the govt isn't taking control as they did with the Freddie/Fannie Nationalizations.


free markets are dead, to pharaphrase several other big time authors that the masses read & follow.
But... as long as the govt/treasury is not seizing the Leahman business,
i expect another firm to sell Leahman the breakup and restructuring plan for a bundle...
it could likely be JP Morgan that assists in the Leahman demise.

Obviously an arms length or fair market sale of Lehman or its parts cannot be arranged. Fed or government guarantees will be given for those assuming the risk of having to make good on credit default swaps that may have been sold (recklessly or in bad faith?). The credit default swaps multiply the downside risk to the entire financial system. Because the press feigns ignorance, the public in general are unaware that the downside risk is total not just hundreds of billions as the nominal number that is thrown around as the cost of the Freddie and Fannie debacle. The cost of FMFM bailout was beyond the Feds capability hence Treasury had to pick it up.

No one (except uncle sam)is going to make good on credit default swaps; they were "innovative," and "creative," meaning fraudulent in nature. If one is beyond impugning the elites, one could say they were reckless. What is your moral or ethical quality when you are reckless making commitments in the billions of dollars? That is reason for the euphemism "moral hazard." To paraphase Jim Rogers no one is going to have to sell their Maserati. The investment bankers are laughing all the way to the bank while John Q Taxpayer picks up the tab. The alternative is the greater depression or $50,000 gold.

The original headline changed on me after posting. The "helping" was not in the original headline on the post, I copy and pasted straight from the source article. Must have had an update.

Going to be a busy weekend for banksters/fed/Treasury bastards IMHO. A Lehman boondoggle to work out, contintuation of FNFM madness, a strong hurricane heading straight for major US oil territory, and has anyone seen the cost for WaMu to insure it's debt? I've seen the figures and they made my jaw drop. FDIC will be in there soon if not this weekend.

Privatized profits and socialized losses. Sounds more like fascism than socialism to me. While this particular instance does not yet seem as flagrant a transgression as other recent events, the trend is being set. Welcome to the new Homeland my friends.