Lehman Brothers Close To Collapse - US Chapter 11 insolvency procedures starting

Ok maybe this is a personal wild thought, so keep that in mind. From the way it looks like to me it's as if.. they worked out an agreement, the FED and the government. I know it sounds strange but for them to inject that much to basically save us from collapse? We've seen from the past what they could and have done.. so just what is it that we have lost now? Maybe I'm just looking too far into this. -_-?

Originally posted by Sky watcher
AIG will need to show 200 billion tomorrow to save its rear from what MSNBC has been told. They are calling this financial Armageddon. They say AIG will more than likely go belly up when they the markets open.

Better get to the banks people or they may just slam the door in your faces tomorrow. I hope not but this don't look good, We all pretty much knew this was coming.

Holy crap AIG too?

Those guys have a trillion dollar balance sheet. This is huge, if this insurance giant goes down its gonna be costly.

With all this financial mess, I wouldn't be surprised if lynch mobs start attacking Wall Street....I would probably join them.

Better get to the banks people or they may just slam the door in your faces tomorrow. I hope not but this don't look good, We all pretty much knew this was coming.

Okay, before we all panic and start running to church..

This financial happened in Japan in 1990s and Hong Kong too - we are entering a period of deflation (low growth and low prices.) The massive sell off in commodities indicate inflation is going to rapidly fall soon, which will create a whole new set of problems.

Lehman Brothers was an investment bank, not a commercial, and that's why the Fed did not rescue the business.

reply to post by LwSiX


As usual another band aid to keep the markets from getting deeper and deeper into the crash trend before elections.

Can you imagine no President wants to leave with a collapsing market to his history and what a way to inaugurate the new President with a collapsed economy.

Is nothing but politriks.

London is down 4% again, that's 8% loss in 24 hours

Governor of the Bank of England has been in two meetings with the Prime Minister in the last 30 minutes, FTSE 100 has fallen below 5,000

Yikes

Central banks pumped vast amounts of extra funds into world financial markets for a second day on Tuesday in an increasingly fraught effort to contain the fallout from the crisis sweeping Wall Street's biggest firms.

From Sydney to Frankfurt, central banks injected billions of dollars of emergency funds to stop money markets from seizing up

Today, was a big day on the markets.
A big day of world leaders giving the economy a major dose of morphine.

180 billion dollars was injected into markets by Europe, the UK and the US.

The U.S. Federal Reserve added $50 billion of temporary reserves via overnight repurchase agreements, but demand was higher, at $63.25 billion.

The European Central Bank injected 70 billion euros ($98.09 billion) into money markets on Tuesday, after 30 billion the day before.

In Britain, the Bank of England injected 20 billion pounds ($35.21 billion), after five billion on Monday.

Another major bank, drastically cuts its outlook

Goldman Sachs Group said Tuesday third-quarter earnings plunged 70 percent as one of the worst market slumps ever weighed on banking and trading results.

and IAG isnt getting nowhere quick

Shares in troubled insurer giant American International Group plunged nearly 40 percent in electronic trading before the market open on Tuesday as it was struggling for survival a day after a financial tsunami swept away investment bank Lehman Brothers and forced the sale of rival Merrill Lynch in the biggest financial industry shake-up since the Great Depression.

will wall street and the fed step in?

Again seeking a private solution to Wall Street's woes, the Fed had asked JPMorgan Chase and Goldman Sachs to explore arranging $70 billion to $75 billion in loans to support AIG, among other financing options, another person familiar with the situation said.

Christ, tonights going to be interesting! ;o) lemme grab some popcorn!

[edit on 16-9-2008 by Agit8dChop]

UK Government is going after short selling after HBOS has declined 57% - the bank has just raised £4.5 billion and has £600 billion of assets.

London is down 5% now.

The silence from the Treasury is deafening

FTSE 100 has just hit the 4960.

once you understand how money works, then you'll realise this is all planned. And why?my guess is canada, usa and mexico will have no choice but to join the Amero and the UK will join the euro. One step closer to the centralisation of power.

[edit on 16-9-2008 by LwSiX]

Well the AIG CEO was almost crying on CNBC asking for help to keep the them afloat, so I guess the fed will step in and take over once again.

I am pretty sure that they will bail out AIG.

Lehman Bros, has reached bottong line this morning.

[edit on 16-9-2008 by marg6043]

With Lehman going down, having a workforce of 26,000,
there are expected to be over 20,000 jobless finance industry workers looking for positions in a shrinking market place.

Wall street itself has axed ~10,000 positions in the last year.

the financial industry nationwide has trimmed ~65,400 positions YoY


AIG, MorganStanley, several regional banks & S&Ls should add to the # of displaced workers. I estimate that there are 200,000 financial industry positions at risk...
and after the industry 'consolidation' (call it a de-flation of firms & personnel)...i expect that perhaps only 50,000 financial industry positions will remain.


? can these people be retrained to do infrastructure rehabilitation work?
i doubt it

Its not looking good out there.

Just think what your Social Security would be looking like right now if bush minor had had his way?

In some ways McCain is correct... the fundamentals of the economy are sound only in the sense that the stock market hasn't had any real connection to the actual in your pocket at the checkout line economy for years.

Still its hard to see how such failings are not going to be a disaster for both the economy and for McCain's chances...

... after all it is the Republican pushed deregulation of the financial industry that has directly led to this mess.

reply to post by marg6043


Yeah, I saw that. Do I hear violins playing? How many house and cars does he own? Oh my, after this he might have to pump his own gas.

www.kunstler.com...

So, as our industrial base waned, and our factories got old and brittle, and our labor force was steeply under-bid by cheaper labor forces, we embarked on a quest for "the new economy." This was represented in successive turns as the information economy, the consumer economy, the high-tech economy, et cetera. They were all ruses, aimed at concealing the truth -- which was that we had become a society no longer producing things of value, no longer generating real wealth. The final act of this farce has been the so-called "financial industry."

That "industry" turned out to be most earnestly devoted to the production of complex swindles. They were so finely engineered that it took twenty years for the swindles to stand revealed, and they were cleverly hitched to the primary thing that the American public vested its identity in: house-and-home. Thus, much of the public finds itself in very real danger of becoming homeless and broke.

We generally recognize that some wicked-massive transfer of wealth occurred in the process of the mortgage fiasco, but it remains to be seen whether any residue of this wealth can actually be retained, as represented by currencies, contracts, and supposed securities. The wholesale settling of debt now underway may leave an awful lot of this stuff with no value.

How interesting..

Barclays have agreed to buy parts of Lehman Brothers. When the British bank pulled out the deal, Lehmans filed Chapter 11 and now Barclays has decided to buy up parts.

reply to post by infinite


Infinite;

Does that mean that Barclay's may actually be part of the wealth consolidation scheme? Is Barclay's a commercial bank or an investment bank? And what was the 'bang for the buck'? Did they get a better deal by waiting until Lehman folded? It seems to these untrained eyes that it made no difference.

Lehman Is In Advanced Talks to Sell Key Business

www.cnbc.com...

In its Chapter 11 filing, Lehman named Citibank and Bank of New York Mellon as trustees for about $138 billion of senior Lehman bonds. It said Citi's Hong Kong affiliate had made a $275 million bank loan to Lehman.

Among Lehman's other unsecured creditors are Japanese banks Aozora Bank, Mizuho Financial Group Inc, Shinsei Bank and UFJ Bank.

France's BNP Paribas is also on Lehman's list of its 30 largest unsecured creditors.

The firm said that as of May 31, it owed about $110.5 billion on account of senior unsecured notes, $12.6 billion on account of subordinated unsecured notes, and $5 billion on account of junior subordinated notes.

Lehman also disclosed that it owned stakes of 10 percent or more in a number of companies, including Imperial Sugar Co , Lpath Inc, Derma Services, Flagstone Reinsurance, GLG Partners, Ronco Corp , Pacific Energy Partners, Blount International , Pemstar Inc and Transmontaigne Inc.

The investment bank, once the fourth-largest in the United States, had hoped to raise capital by selling off a stake in its investment unit, and use that capital as well as other funds to spin off some of its toxic assets to shareholders.

Now if investment were allowed in free energy...well.. none of this
would have happened.

Like building a million CERNs... free energy machines that do nothing.

But the houses would have been bought by now with all those good jobs.

Originally posted by Maxmars
Is Barclay's a commercial bank or an investment bank? And what was the 'bang for the buck'? Did they get a better deal by waiting until Lehman folded? It seems to these untrained eyes that it made no difference.

Barclay's is a commerical bank, but has an investment wing too. The deal failed because the British bank could not get backing and security from the Fed. Now, Barclay's have the opportunity to pick out the profitable parts and leave the rest for scraps.

Wow,

The Russian stock market crashed today - 11%

A lot of this reminds me of the "conspiracy" of the Rothchildes back when they got the Brit. stock market to crash (something about France and Napoleon's wherabouts was withheld) - bought up the cheap shares and then everything rose in value. Someone's making good money out of this situation. Not too many people - but some well positioned people. Sux for the rest of us.

Turns out that the Rothchildes (sp?) thing was a rumor and not backed in fact - but it keeps coming out. In this case, credit crash due to bad business practices - sure, that can be planned by higher-ups, but who knows if that's the case.

[edit on 16-9-2008 by bonaire]