Who is going to be next?

Who is going to be next?
Sep 16, 2008 01:31
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Jesus Christ! Yesterday, Leman Brother, the fourth largest investment bank with a history of 158 years, declared itself bankrupt. Couldn’t believe it! The day before yesterday, I just read that the US government might take some measures to save Leman Brothers. Really a surprise! Leman Brother’s bankruptcy has caused a financial earthquake to the global markets. The European and Asian markets were both affected greatly. In Europe, the DAX index in Frankfurt slumped 2.74 percent and the CAC40 index in Paris down 3.78 percent. Yesterday, China (mainland and Hong Kong markets), South Korea and Japan markets were closed. However, Taiwan market fell 3.5 percent. The S&P/ASX 200 index in Australia dropped 2.7 percent. The stock markets in Singapore, Malaysia, Philippine and New Zealand all dropped too. Although China’s stock market wasn’t affected yesterday, the central bank of PRC had declared to cut the interest rate on loans by 0.27 percent. Meanwhile, the reserve ratio was also adjusted, 1 percent down for those financial organizations except ICBC(Industrial and Commercial Bank of China, ABC (Agricultural Bank of China), BOC(Bank of China), CCB(China Construction Bank), BOC(Bank of Communications) and PSBC(Postal Saving Bank of China). The reserve ratio in Wenchuan earthquake area will be cut down by 2 percent. Apparently, China also wants to stabilize its A-share market. Another piece of news: BankAmerica Corporation has agreed to acquire Merrill Lynch with an offer of 50 billion US dollars.

Sep 16, 2008 01:31

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Jesus Christ! Yesterday, Leman Brother, the fourth largest investment bank with a history of 158 years, declared itself bankrupt. Couldn’t believe it! The day before yesterday, I just read that the US government might take some measures to save Leman Brothers. Really a surprise!

Leman Brother’s bankruptcy has caused a financial earthquake to the global markets. The European and Asian markets were both affected greatly. In Europe, the DAX index in Frankfurt slumped 2.74 percent and the CAC40 index in Paris down 3.78 percent. Yesterday, China (mainland and Hong Kong markets), South Korea and Japan markets were closed. However, Taiwan market fell 3.5 percent. The S&P/ASX 200 index in Australia dropped 2.7 percent. The stock markets in Singapore, Malaysia, Philippine and New Zealand all dropped too.

Although China’s stock market wasn’t affected yesterday, the central bank of PRC had declared to cut the interest rate on loans by 0.27 percent. Meanwhile, the reserve ratio was also adjusted, 1 percent down for those financial organizations except ICBC(Industrial and Commercial Bank of China, ABC (Agricultural Bank of China), BOC(Bank of China), CCB(China Construction Bank), BOC(Bank of Communications) and PSBC(Postal Saving Bank of China). The reserve ratio in Wenchuan earthquake area will be cut down by 2 percent. Apparently, China also wants to stabilize its A-share market.

Another piece of news: BankAmerica Corporation has agreed to acquire Merrill Lynch with an offer of 50 billion US dollars.

Sep 16, 2008 01:32	#1
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Who will be next?

Sep 16, 2008 02:53

WCTMAN
Points:
Join Date: Dec 17, 2005
Status: Offline

Of course, the upper management of Lehman saw this coming for a while. The American Securities and Exchange Commission ( SEC ) should launch an immediate probe to investigate whether or not those in upper management "dumped" shares before the collapse of their market price. How would you feel this morning if you saw your shares, which were once valued at $135.00 each, fall to $0.27? And how would you feel if those in charge of the company bailed out some time ago, since they knew a "bit more" than you did about the pending collapse?

Sep 16, 2008 04:53	#3
GUEST7622	Who is going to be next? Jimmyb, that guy has given you the answer. In the first line, Lehman Brothers was bankrupt and Merrill Lynch was acquired by BankAmerica Corp. The only one left was Citibank. Maybe, it will be the next.

Sep 16, 2008 14:45	#4
CANADAGUY Points: Join Date: Oct 1, 2007 Status: Offline	Jimmy, you are right, this is really serious. If you have investments and haven't lost much money so far, this is a time to reconsider your options. I don't know how the rest of the world's economies will perform, but the U.S. economy is in for an extremely rough ride the next few years. Brace yourselves!

Sep 16, 2008 18:34	#5
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	China financial system seems to begin adoping aggressive US mode, the first lesson taught by fbig brother is FAILURE. The plung of Chinese stock market and rate cut is mechanical imitation.

Sep 16, 2008 22:16

LEONARDO
Points:
Join Date: May 21, 2007
Status: Offline

USA is facing a serious financial turmoil.

The Federal Reserve Bank of New York will lend an 85 billion dollars for American International Group Inc. (AIG) to rescue the country's biggest insurer from bankruptcy.·If AIG fails, it could trigger a wave of problems for banks around the world.

Merrill Lynch & Co., the third largest U.S. investment bank, sold itself to Bank of America Corp. The fourth largest US investment bank went bankrupt. What is the plight of the second largest US investment bank?

Sep 18, 2008 22:54	#7
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	It is said that Morgan Stanley is in danger too. Maybe, it will be next Merill Lynch.

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