Update: National capitalism reborn, first controlled 9/15 demolition Lehman, Chrysler next ?
US creates government sponsored Bad Bank
John W. Snow, Cerberus hedge fund CEO (Chrysler) says:
"We have a broken Market economy, we have to fix it"
National capitalism reborn, first controlled 9/15 demolition Lehman, Chrysler next ?
READ MORE > "Wall street black hole, creative destruction Schumpeter/Havard"
Lehman Chapter 11 Top creditor
Tokyo Azora bank hit with $463 million for Lehman bank loan exposure...Who is the owner of Azora Japan ? The U.S. hedge fund CERBERUS ( greek, "the dog at the gates of hell, Guard dog of Hades") Who is the owner and manager of Chrysler, CERBERUS ! A mass chain reaction banks insurances, big 3 car industry on the way ?
Lehman Chapter 11 filings
Other top creditors of Lehman include Mizuho Corporate Bank Ltd., owed $382 million, and a Citigroup Inc. unit based in Hong Kong owed an estimated $275 million, according to the chapter 11 filing.
Lehman bondholders may get about 60 cents on the dollar at liquidation.
Lehmans ratio of total assets to shareholders' equity 31, 33 at Morgan Stanley and 32 at Merrill Lynch. Goldman Sachs 22.
Implosion of banking sector
The collapse of Lehman Brothers could be catastrophic and could lead to "implosion" of the Banking sector
source: SKYNEWS TV
VIDEO: Lehman Bothers employees saving stuff from chapter 11
Lehman Brothers, after failing to find a buyer in either Barclays or Bank of America, seems to be heading toward a fate where it would file for bankruptcy sometime tonight
Lehman filing for bankruptcy liquidation, which is expected ON MONDAY, is the first winding-down of a Wall Street firm since the bankruptcy of junk bond firm Drexel Burnham and Lambert in 1990.
VIDEO : Greenspan, Lehman Should be Resolved Without Aid
U.S. stock will continue to tumble on monday on concern a potential Lehman Brothers Holdings Inc. bankruptcy will add to banks' $514 billion of subprime-related losses.
With Barclays and BofA dropping out, Lehman's survival options begin to dwindle. The Lehman executive, who declined to be identified, said "this looks like the end."
Separately, the International Swaps and Derivatives Association staged a special trading session so that big brokers could limit their Lehman Brothers risks.
The session was called "to reduce risk associated with a potential Lehman Brothers Holding Inc. bankruptcy," according to a statement on the ISDA's Web site
Lehman would need the Barkley's deal to achieve a so called "Bad Bank" status by US regulators and finacial back up of acquisiton. The Bank of America is not interested without government support . Trader comment: if they go into liquidation," it is going to be a bad situation on Monday.
The fate of Lehman Brothers Holdings Inc.'s darkened early Sunday afternoon after Barclays PLC, the sole remaining bidder for the 158-year-old Wall Street firm, told federal regulators that it is walking away from a transaction, people familiar with the matter say. With Barclays ending talks and the government balking at putting any taxpayer money at risk for Lehman, the likelihood of a transaction was dimming. That would leave an orderly liquidation as the most likely scenario, a dramatic outcome for a once-powerful firm.
A plan to split Lehman Brothers into "good" and "bad" banks began to take shape, but regulators failed to reach a deal by the end of the day. Lehman as one bank will not exist any more. Lehman's uglier-looking holdings would be splitted into a "bad" bank containing about $85 billion in assets. Other Wall street banks would have to inject the same amount to make the deal real.
At hedge funds, analysts worried that investors would rush to withdraw their money. As a precaution, Wall Street banks have taken the extraordinary step of hiring advisers to assess the impact of the possible bankruptcies of other big financial institutions.The mood could darken even further this week as several big Wall Street banks report what are expected to be grim quarterly results
At hedge funds, analysts worried that investors would rush to withdraw their money. As a precaution, Wall Street banks have taken the extraordinary step of hiring advisers to assess the impact of the possible bankruptcies of other big financial institutions.The mood could darken even further this week as several big Wall Street banks report what are expected to be grim quarterly results. source: nytimes
Liquidation or bad bank deal
Lehman has hired law firm Weil, Gotschal & Manges LLP to prepare a potential bankruptcy filing.I f Lehman entered into bankruptcy protection, the brokerage units would enter Chapter 7 liquidation and the court-appointed trustee would liquidate the firm's assets and give customers back their money.
Germany called on U.S. authorities Saturday to find a solution for crisis-hit bank Lehman Brothers before Asian markets reopen for trading early Monday. Finance Minister Peer Steinbrueck -- who manages the EU's largest economy -- told reporters that "the news that is coming out of the U.S. is bad," confirming that financial markets are still suffering sharply from a credit crisis that started last year.U.S. officials have so far talked down a government rescue for the country's fourth-largest investment bank
EU finance ministers NICE
"We expect that a solution will be put forward before Asian markets open on Monday," Steinbrueck said on the sidelines of an EU finance ministers' meeting in Nice.
Explainer EU bank defense meeting NICE
EU not ready for banking collapse US style
The european members consider how the EU should collectively respond to the spreading global economic....Lehman in the center of EU talks. Lehman can cause mass collapse, if not controlled by US.
second source in part: Foxbusiness