Lehman Bros., Merrill-Lynch and More Financial Round-Up
158-year-old Lehman Brothers filed for chapter 11 bankruptcy this weekend, and Merril-Lynch was bought out, as was a major insurance company, AIG. Since then, prices have been tumbling and the market has gone 'round the bend.
Here's some 'local' NowPublic coverage of the market reactions -
Dave Keating was writing about the European market reaction this morning:
European markets are not reacting well to the news that Lehman Brothers and Merrill Lynch are filing for bankruptcy and are not going to be bailed out by the US government. Across the continent, the markets are taking a dramatic dive. This does not bode well for Wall Street once the US markets open in five hours.
SolarLife is reporting from Europe as well, and has been covering the Lehman crash since word first broke.
Traders on the run saving their valuable boxes filled with client/trading Information. If layed off they don't get payed for nine months. London Lehman traders get the boxes out too, 5000 empolyees without uncertain Future. London will get a full hit on the financial district, the whole city economy will be touched.
Here's Djermano's take on the finance breakdown:
What would you do? This is what I would do......
Banks will be required to give zero percent loans to bank members.
All bank loan equity becomes property of the entire membership, until paid off.
And of course, a number of bloggers are writing about it. Here's a description of major events happening in the finance world this coming week:
Industrial production, buoyed by exports, has been a relative strong point in the US in 2008. Monday the Federal Reserve will report on nationwide industrial production and capacity utilization (a potential indicator of inflation pressure) and the New York Fed will release the Empire State Manufacturing Survey, an important leading indicator for the national trend.
Justin Fox has an interesting piece on why this happened to Lehman and not someone else:
You can find lots of people arguing now that CEO Dick Fuld's hubris led to the collapse of Lehman Brothers. It may well have been a factor, but the flip side is that Dick Fuld's hubris was instrumental in resurrecting Lehman in 1994 from its long dormancy as a subsidiary of American Express. As Roddy Boyd and Allan Sloan put it in the pages of Fortune back in July:
Here's a link to the actual bankruptcy notice from Lehman Brothers Holdings Inc.: