US govt announces $85 bn loan to save AIG
History of Lehman I Credit crisis: A subprimer
Barclays agrees to buy some Lehman assets: Source
US stocks end higher after Fed keeps rates unchanged
The Great Crash of 1929, and lessons taming the crisis of 2008
US FDA blocks imports from Ranbaxy for poor quality
Emami doubles open offer price for Zandu
AIG's shares plunge AIG too big to fail: Analysts AIG fact file
Experts speak on financial crisis Anatomy of credit crisis
Rising dollar to make your cell dearer
US crisis makes Satyam look East
Fed holds key rates steady
Morgan Stanley Q3 profit falls 3%
Can Chrysler survive US slump?
Reliance Infra eyes India steel plant - official
TCS, Wipro recast hiring plans
Welspun India to demerge divisions into separate cos
RBI may hike key rates again, says Dun & Bradstreet
Edelweiss Securities maintains baccumulateb rating on ITC
Kotak Securities maintain bbuybon Infosys Technologies
IRDA seeks status report from Tata, AIG
Indian IT majors turn cautious post Lehman, Merrill fall out
RBI steps in to cool financial markets
Fuel price cut only when oil at $67: Deora
RNRL may lead ADAG's new forays
ONGC to enter solar energy business
ADB lowers India's economic growth forecast to 7.4 per cent
Indian banks’ Lehman exposure negligible
RBI moves in to ease pressure on markets
Reliance Infra hopes for EPC contracts in nuclear energy
Value of AIG’s India mutual funds falls by 7%
250 stocks hit new year lows on NSE
---------------------------------------------
Other Stk,Mkt reports from Deadpresident
Economy, Oil & Natural Gas Corporation, HCL Techno...
IDBI HDFC ONGC
Banking shares recover
Rupee falls to nearly 47
Nifty September 2008 futures at premium
Asian Markets End Sharply Lower
Futures and Options - Sep 16 2008
Triveni Industries
Post Session Commentary - Sep 16 2008
Bank shares lead intra-day rebound; Fed in focus
AIG - India Holdings
More jitters for the market
Gold Ends Higher In Volatile Session
Daily Technicals - Sep 16 2008
Morgan Stanley - next ?
Lehman invested in DLF, Unitech
Futures and Options - Sep 15 2008
Goldman Sachs - India Holdings
Once in a Century Crisis - Greenspan
Oil's great crash
Monthly Economic Review
India Infrastructure
Weekly Technicals - Sep 16 2008
Nestle
Lehman India sell off
India Economy, Cairn India, Hindustan Unilever, He...
Sintex Industries, Everest Kanto, Nitin Fire Prote...
Warren Buffet - 10 ways to get rich
India GSM Subscriber Figures
Nagarjuna Construction Ltd
Lehman Brothers - India Holdings
Dalal Street catches cold as US sneezes
Infosys Technologies
Lehman Brothers - Holdings in India
Source:ET,BS,BL, deadpresident blog.
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17 September 2008
Why Lehman went bust and what it means for you
Why Lehman went bust & what it means for you
Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . .
What is (or was) Lehman Brothers?
America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition known to mankind.
The 158-year-old firm was founded by brothers Henry, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in New York after having made money in railway bonds. So what went wrong?
Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, like railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of Long-Term Capital Management in the 1990s.
Thus the collapse of the giant investment bank came as a major shock for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan.
The $613 billion (some estimates put the size at $639 billion) bankruptcy thus throws up the question: why did the Wall Street giant go bust? Here's why. . .
Why did Lehman Brothers go bankrupt?
The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy. Lehman was strangled by a massive credit crisis and fast plummeting real estate prices.
The gargantuan $60 billion loss in bad real estate loans forced the bank to file for bankruptcy.
However, the fall of the 158-year-year institution that started cotton trade in US before the American Civil War and financed the railroad that built a nation, got hit by a large dose of bad luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld.
But there were more reason. Check out what they were. . .
For full details:Why Lehman went bust & what it means for you
------------------------------------------------
Lehman falls, Merrill sold, AIG tottering. What next?
series of events in United States, including Bank of America agreeing to buy Merrill Lynch for $44 billion and Lehman Brothers' move to file a bankruptcy protection, has shaken up the global financial markets.
About 10 major banks, comprising Citigroup and Credit Suisse Group, reached an agreement to create a $70 billion borrowing facility committing their own money, which could be used to tide over the financial crisis.
Lehman Brothers thought of bankruptcy after it failed to find a buyer and financial media reports said that AIG could survive for only a few days without infusion of the capital.
The giants of financial markets have been shaken up by losses of hundreds of billions of dollars in bad mortgages in the housing markets.
Lehman Brothers began considering bankruptcy after Barclays and Bank of America, the top suitors, walked away apparently following Federal authorities declining to provide financial backup to them, declaring bankruptcy would allow Lehman's subsidiaries to continue to function as the company itself is wound down.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence," the New York Times said.
Though the Federal Reserve steered clear of bailout of Lehman, the Wall Street Journal said it is expected to take new steps to stabilise the broader financial system.
These steps, expected to be temporary, would make it easier for banks and securities firms to borrow from the central bank by using a wider range of collateral.
Bankers say these financial institutions might need short-term funds as they unwind their many trading positions with Lehman.
Merrill has some 60,000 employees and Lehman 25,000. It was not clear how the moves would affect them. AIG executives were reported to be trying to raise funds by selling assets or infusion of capital from private equity firms.
But late Sunday night, the New York Times reported quoting a person briefed on the matter that the insurance giant was seeking a $40 billion bridge loan from the Federal Reserve as a potential downgrade of its credit rating could spell doom.
Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counter-parties to withdraw capital from their contracts with the company, the paper said.
more @ http://specials.rediff.com/money/2008/sep/15slide2.htm
Source:Rediff.com
Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . .
What is (or was) Lehman Brothers?
America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition known to mankind.
The 158-year-old firm was founded by brothers Henry, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in New York after having made money in railway bonds. So what went wrong?
Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, like railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of Long-Term Capital Management in the 1990s.
Thus the collapse of the giant investment bank came as a major shock for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan.
The $613 billion (some estimates put the size at $639 billion) bankruptcy thus throws up the question: why did the Wall Street giant go bust? Here's why. . .
Why did Lehman Brothers go bankrupt?
The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy. Lehman was strangled by a massive credit crisis and fast plummeting real estate prices.
The gargantuan $60 billion loss in bad real estate loans forced the bank to file for bankruptcy.
However, the fall of the 158-year-year institution that started cotton trade in US before the American Civil War and financed the railroad that built a nation, got hit by a large dose of bad luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld.
But there were more reason. Check out what they were. . .
For full details:Why Lehman went bust & what it means for you
------------------------------------------------
Lehman falls, Merrill sold, AIG tottering. What next?
series of events in United States, including Bank of America agreeing to buy Merrill Lynch for $44 billion and Lehman Brothers' move to file a bankruptcy protection, has shaken up the global financial markets.
About 10 major banks, comprising Citigroup and Credit Suisse Group, reached an agreement to create a $70 billion borrowing facility committing their own money, which could be used to tide over the financial crisis.
Lehman Brothers thought of bankruptcy after it failed to find a buyer and financial media reports said that AIG could survive for only a few days without infusion of the capital.
The giants of financial markets have been shaken up by losses of hundreds of billions of dollars in bad mortgages in the housing markets.
Lehman Brothers began considering bankruptcy after Barclays and Bank of America, the top suitors, walked away apparently following Federal authorities declining to provide financial backup to them, declaring bankruptcy would allow Lehman's subsidiaries to continue to function as the company itself is wound down.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence," the New York Times said.
Though the Federal Reserve steered clear of bailout of Lehman, the Wall Street Journal said it is expected to take new steps to stabilise the broader financial system.
These steps, expected to be temporary, would make it easier for banks and securities firms to borrow from the central bank by using a wider range of collateral.
Bankers say these financial institutions might need short-term funds as they unwind their many trading positions with Lehman.
Merrill has some 60,000 employees and Lehman 25,000. It was not clear how the moves would affect them. AIG executives were reported to be trying to raise funds by selling assets or infusion of capital from private equity firms.
But late Sunday night, the New York Times reported quoting a person briefed on the matter that the insurance giant was seeking a $40 billion bridge loan from the Federal Reserve as a potential downgrade of its credit rating could spell doom.
Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counter-parties to withdraw capital from their contracts with the company, the paper said.
more @ http://specials.rediff.com/money/2008/sep/15slide2.htm
Source:Rediff.com
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