A bias to buy dollars remains…The Fed was warned as far back as 1999! Fujii gets “the memo”! A ton o’ data all around the globe this week! And Now… Today’s Pfennig!
It was one year ago that Lehman Bros. went to the great investment bank in the sky. But it was also when the feds arranged the shotgun marriage of a failing Merrill Lynch to a moribund Bank of America (NYSE:BAC). And AIG’s collapse into federal hands was taking shape, if not yet a done deal.
This week marks the one-year anniversary of the Lehman bankruptcy. The media struggles to say something meaningful about it. Here at the Daily Reckoning we will not even attempt meaningfulness. We’ll be satisfied with a few snide remarks.
Andrew Gordon says major investors are being forced to liquidate assets to raise cash meet margin calls.
There’s blood on Wall Street today.
Here is the latest top news and commentary about the crisis on Black Monday:
Oil and Commodities Prices Plunge (FT)
Turmoil Boosts Yen and Swiss Franc (FT)
Gold Surges $25 as Financial Crisis Deepens (Market Watch)
AIG shares fall 52 percent (Reuters)
Pimco, Vanguard, Franklin Are Biggest Bond Fund Losers in Lehman Collapse (Bloomberg)
The bankruptcy of Lehman Brothers (NYSE:LEH) is “quite favorable,” says Gloom, Boom & Doom Report publisher Marc Faber.
“The air will be clean within the next one month and we can get a fairly good rebound starting from the middle of October until the spring of next year,” he said in a Bloomberg Television interview.
Faber also warns that AIG (NYSE:AIG) may be a “much bigger problem” than Lehman…
From Dow Jones Newswire on Tuesday: “Shares of Lehman (LEH) added 12% after the company announced plans to offer $4 billion in convertible preferred shares.” Analysts are crowing happily at this news.
Lehman’s heavy subprime exposure and thus-far minimal writedowns are making investors jittery, reports BusinessWeek.
Shares in the Wall Street bank Lehman nearly half their value yesterday on the coattails of the Bear Stearns meltdown, before finishing down 19%.
Lehman’s fiscal first-quarter earnings, announced today, fell 57% due to a steep decline in its capital markets business, but its shares soared as it easily beat Wall Street forecasts.