N.Y. Fed calls meeting to forestall Lehman collapse

Interesting development in the Lehman Brothers situation.

What is really going on here?

]www.marketwatch.com

As U.S. Treasury officials made it clear the government will not bail out Lehman Bros., the Federal Reserve Bank of New York met Friday night with Wall Street executives in an effort to forestall the collapse of the investment firm and shore up rapidly weakening financial markets.

The New York Fed called the emergency meeting Friday evening with the heads of major financial institutions and the group reportedly plans to continue meeting throughout the weekend if necessary to come up with a plan to save the ailing Lehman Bros. (LEH:3.76, -0.46, -10.9%) and prevent further damage among financial companies.

According to media reports, Fed spokeswoman Michelle Smith confirmed the meeting but did not disclose which financial institutions participated in the meeting or whether the group had reached any decisions. But Smith told media outlets that that Treasury Secretary Henry Paulson, New York Fed President Timothy Geithner and Securities and Exchange Commission Chairman Christopher Cox were present.

Further down the article these banking big wigs were named as being present:

The Wall Street executives attending included Morgan Stanley (MS:37.23, -1.48, -3.8%) Chief Executive John Mack, Merrill Lynch (MER:16.96, -2.47, -12.7%) Chief Executive John Thain, J.P. Morgan Chase (JPM:41.11, -0.54, -1.3%) CEO Jamie Dimon, Goldman Sachs Group (GS:154.21, -2.82, -1.8%) CEO Lloyd Blankfein, Citigroup Inc. (C:17.96, -0.65, -3.5%) head Vikram Pandit and representatives from the Royal Bank of Scotland Group PLC (RBS:4.32, +0.13, +3.1%) and Bank of New York Mellon Corp., as well as others, according to the Journal.

Who's next? WaMu? Wachovia?

Why is the US taxpayer going to have to pay for these mistakes?

If Paulson said the US government is not going to bail out Lehman, why is he involved in these meetings. Consultant? Advisor? or co-conspirator?

What are they planning?

I don't know, but something smells...

Check the bank watch mega thread thingy.

www.abovetopsecret.com...

News that the bank probably won't survive the weekend.

Oh, and btw I mention there that I am surprised they beat WAMU to the pits. I do believe that one is coming.

BLOOMBERG JUST STATED THAT THE BANKRUPTCY WILL HAPPEN TONIGHT.

THIS WAS 00:05 GMT

See: www.abovetopsecret.com...

it`s the beginning of the end for the "live now pay latter" lifestyle. Monday,15th of September will be one of the days to remember... God be with us all


[edit on 14-9-2008 by sty]

reply to post by sty


Actually. I think the demise will be slow and painful. I expect a small pop tomorrow due to the sale of lehman and the perception that the credit markets are okay but over riding poor fundementals in the financial sector and the slow economy will ultimately end the greed on wall street with a crash next month.

reply to necspe

well, tonight at 11:59 US time the bank will file the bankruptcy . This is the 4th largest bank in the US . The impact is very large as banks are nested with other banks , so it is very unlikely this US bank will sink alone. My guess - loss of 1000 points on DOW tomorrow. One month would be better.. as you say . We will see..


[edit on 14-9-2008 by sty]

Originally posted by necspe
reply to post by sty

 

I expect a small pop tomorrow due to the sale of lehman

Sorry; but filing BK does not equal sale.

Watch this tonight to see what Asia thinks: Yahoo world indices

This unfortunately is going to be very painful; but very necessary. Prices and valuations cannot keep going up forever as they have been. Cycles keep things in check.

About a month ago, our friends overseas were calling for another major bank to fail. Maybe next time more people will listen instead of dismiss.

WaMu is next.

Watch for rumor plays in the weeks to come because the market will be so ripe for corruption (even more than usual) that you'll see more of the same, like what just happened last week to UAUA. Anyone who thinks that was a screwup is delusional.

reply to post by titian

Banks were in tense talks to create a pool of money worth up to $50 billion to lend troubled financial companies, the official said on condition of anonymity because the discussions were ongoing.

I didn't know that bankrupcy was finalized. I thought they were still trying to sell it.

This story Sunday September 14, 7:51 pm ET


biz.yahoo.com...

OH MY !!! Lehman and Merril both gone in a weekend. And that's two hand grenades BoA has jumped on now. Anyone remember the first?

CNBC drug most ot their top talent in tonight for a live special.