Truemors
VIDEO: LEHMAN OFFICE WORKERS LAID OFF
Opinion Solarlife Moneytalk:
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.
What to do ? What's next?
Speculation with fancy papers is dead. Money must go into real economic Activity. The investors are heading for the hills clearing their positions. No bull market in sight for a long time. The Bank of America buy is suspicious, shares will go down on buy 15%. Interbank markets (explainer, just giving a wothless paper as guarantee) have new limits in trading.
Lack of confidence
People don't look on the return of money, they fence the pproblem in.
Where do we go from here?
If the US problems are ringfenced their is a chance. For the moment being, Europe is the save haven with the Euro zone, the dollar is not strong enough. Europe will introduce defense mechanisms against collapse of transatlantic banks exposed to the Lehman bankruptcy, and others to come. The only way return from speculation to production.
Lehman Brothers (LEH: 3.65, -0.57, -13.50%) filed for Chapter 11 bankruptcy early Monday morning and said it will slowly wind down its operations after being in business for 158 years.
This comes after the struggling firm’s two possible “white knights” – Barclays Bank plc and Bank of America (BAC: 33.74, +0.68, +2.05%) – pulled out of negotiations over the weekend. Both Bank of America and Barclays reportedly found it impossible to absorb the firm without taking on too much of Lehman’s bad assets.
Lehman filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court of the Southern District of New York. The company's broker-dealer subsidiary and other parts of Lehman was not in the filing.
Shares of Lehman brothers were down 90% to around 40 cents a share. A year ago, a share of Lehman would have cost you $60.
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