This is astounding. We didn't get our Friday surprise. I guess we didn't get the announcement of Lehman on Friday simply because they cannot work out the details to hide or cover another failure and now it appears they are planning on breaking Lehman Brothers up and selling it off.
We'll have to call it the Monday surprise which I'm sure they will try to delay for assuredly markets will tank.
Also, WaMu is wobbling, latest rumours.
What about the ban on naked shorts? With this kind of carnage going on why would they allow naked shorts? WSJ reports:
Academic studies and the SEC's own observations have led the staff to conclude the emergency act cut down legitimate short selling, according to a person familiar with the matter.
An SEC spokesman said the staff's analysis of the data suggests that extending the terms of the order across the market would make legitimate short selling too difficult for smaller, less liquid stock
Who believes that?
House of Cards
It looks like AIG is now in trouble due to selling derivatives on credit debt obligations as credit swaps.
Anyone care to map out this Medusa of exotic investment vehicles and how they work?
AIG could be the biggest of all
AIG owns a half trillion dollars in CDS.
When Fannie and Freddie were rescued by the Treasury it triggered a "credit event". Thus all the CDS associated with Fannie and Freddie, and that means trillions of dollars worth, had to be unwound.
AIG was already losing billion. Now they are being forced into extreme measures.
Dr. Doom
Roubini (middle column) is saying if Lehman is allowed to fail it will be like dominoes and he isn't even mentioning AIG. Are we looking at the big one here?
Barkleys pulls out of buyout, Sovereign Wealth Sits It Out
Barclays pulls out of Lehman sales talks.
Traders prepare for Lehman bankruptcy
It just keeps getting worse
We are looking at a very Black Monday.
Even worse interview Mike Whitney
on Debt. I guess he is Kucinich's chief economist (Kucinich had an economist?)
Look at this observation:
It probably isn't helping all of us posting the biggest doom scenario analysts on the web. But, hey, since when has unfettered and corrupt Capitalism not led to Panics?
Paulson against Gov. public funds bailout
Lehman had foreign investors walk away earlier so this might explain why he is against it.
Midnight, the bell tolls
Supposedly Lehman is now preparing for Bankruptcy by midnight.
And....Greenspan is now calling this the worst financial crisis in 100 years. Right, I think he's just trying to cover his ass since he most assisted in making this mess.
$24B taxpayer cost for WaMu bailout
Boy the hits just keep on coming, Bloomberg:
While I'd claim one of the most major economic disasters is potentially unfolding before our eyes.....the press is all about Palin and bogus talking head opinions as well as Hurricane Ike aftermath. Not a word on what's happening on TV.
BofA and Merrill merger talks
One less bailout?
they are scramblin'
My question is how long can they all hide all of this bad debt? Looks like they are moving it around, dumping it on the taxpayer, hiding it through acquisitions.....
CNBC 8pm-10pm EST
Finally, CNBC is going on air 8PM EST to cover Lehman and latest developments.
Who here is disgusted with cable news and their phony pundits with their phony issues filling up hours and hours of air time?
Lehman Brothers HQ
CNBC has a live camera on the building and all sorts of people are going in with boxes and walking out with their arms full.
Primary reserve fund falls below $1/share
Bloomberg:
I've never heard about this before, but it appears to be some sort of money market for banks, investment firms.
Barkleys buys part of Lehman for $1.75B
details
So after they declare bankruptcy Barkleys swoops in and buys the U.S. assets.
What's wrong with this picture? Normally when a corporation is bankrupt there is a hearing, it has to go through the courts...there are processes and creditors who are first up in obtaining value...
They are paying $250M for the US assets and the rest is securities.
I see a major lawsuit from shareholders at least in the works.
Let's just hope they keep the 10,000 employees involved.