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Lehman Bros files for bankruptcy
US INVESTMENT bank Lehman Brothers is eliminating 1300 staff as it continues to scale back its US mortgage operations amid a national housing slump.
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Merrill Lynch bruised by $11bn loss
MERRILL Lynch, one of America's biggest investment banks, lost its money-making stride Thursday as it announced the largest quarterly loss in its history at $US9.8 billion ($11 billion)
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European shares falling on US woes
EUROPEAN stocks ended lower yesterday, falling for the sixth time in seven sessions as weak US factory data added to recession fears, while a massive quarterly loss at Merrill Lynch fuelled worries over banks.
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Bank warns inflation spike could jeopardise interest rate cuts
Inflation is set to rise sharply, potentially jeopardising the chances of interest rate cuts, the deputy governor of the Bank of England warned yesterday.
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Jeremy Warner's Outlook: Banks invite fierce regulatory backlash
Yikes. I warned last Saturday that the crisis in financial markets was about to enter a new and more dangerous phase, with further big writedowns and recapitalisations to come in America and in Europe, but I hadn't figured on the degree of carnage that was unveiled first by Citigroup and now Merrill Lynch.
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Stocks sink for 10th straight day
THE stock market closed in the red for the tenth session in a row, the first time for more than 15 years, as nervous investors retreated to the sidelines, but falls were pared by a late surge from the banks.
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Zimbabwe bank to issue $10m bill
Zimbabwe issues new higher-denomination banknotes, including a $10m bill, to try to ease the country's cash crisis.
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India attacked over UK bank snub
India is accused of "protectionism" amid claims a UK bank was blocked from opening a rural network.
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Investment banks unveil profit falls
GOLDMAN Sachs and Lehman Brothers, two of Wall Street's biggest investment banks, both announced sharp declines in quarterly profits today as a credit squeeze ravages US financial markets.
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Goldman Sachs, Lehman post sharp losses
GOLDMAN Sachs and Lehman Brothers, two of Wall Street's biggest investment banks, both announced sharp declines in quarterly profits overnight as a credit squeeze roils US financial markets.
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Lehman Brothers to report early after stock plummets
Wall Street bank rushes trading statement forward by a week to today amid fears it will fail to raise much-needed capital to shore up its finances
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Lehman reveals rescue plan and $3.9bn expected loss
Wall Street bank moves to avert mounting crisis by rushing out third-quarter results
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Lehman Brothers set to collapse after Barclays and Bank of America pull out of biddin
Wall Street giant Lehman Brothers was close to collapse tonight after Barclays and Bank of America pulled out of takeover negotiations.
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Re: Lehman Brothers set to collapse after Barclays and Bank of America pull out of bi
Lehman Brothers set to collapse after Barclays and Bank of America pull out of bidding
By Karl West
Last updated at 10:03 PM on 14th September 2008
'More big firms will fail': Greenspan
Wall Street giant Lehman Brothers was close to collapse tonight after Barclays and Bank of America pulled out of takeover negotiations.
Both bidders were scared off from ‘writing a blank cheque’ for the world’s fourth biggest investment bank after the U.S. authorities refused to provide guarantees protecting them against potential losses.
It’s feared a Lehman collapse would wreak havoc on global markets, with the prospect of rival Wall Street stalwarts being dragged under, and as much as 1,000 points being wiped off the Dow Jones stock exchange in New York.
The news came as the former head of America's central bank added to the growing crisis of confidence in financial markets by saying he suspected ‘we will see other major firms fail’.
Alan Greenspan also described the banking crisis as the worst of his career and possibly the worst in a century including the 1929 Wall Street crash.
‘There's no question that this is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go,’ he said.
However he added that companies collapsing may not be a problem.
'It depends on how it is handled and how the liquidations take place,' he said.
‘And indeed we shouldn’t try to protect every single institution. The ordinary course of financial change has winners and losers.’
The impending collapse of Lehman came after British bank Barclays dispatched a team to New York over the weekend to weigh up a take-over bid.
But tonight a Barclays spokesman said: ‘It’s over as far as we are concerned.’
Bank of America (BoA) pulled out of the bid just a few hours afterwards and was now reported to be in 'advance talks' in a bid to buy troubled investment bank Merryl Lynch instead.
Lehman is now expected to be put into liquidation.
But preparations were being made tonight to put the bank into Chapter 11 bankruptcy protection, which will protect the bank from its creditors and allow it some breathing space to try and trade its way out of difficulties.
Accountancy giant PricewaterhouseCoopers has been lined up to run Lehman’s UK operations, which could prove to be bad news for its 4,000 London-based staff.
Fears are also growing that Merrill Lynch and insurance giant AIG, which sponsors Manchester United, could be next to suffer.
Investors regard Merrill Lynch as the next weakest investment bank – its shares lost about a third of their value last week, while Citigroup and Morgan Stanley lost just 2 per cent and 4 per cent respectively.
The U.S. Federal Reserve and the White House were last night frantically working to strike a deal before Asian markets opened for trading early this morning.
The Fed has been so concerned about Lehman that it has had its officials camped at the group for the last three months.
The bosses of Goldman Sachs, Merrill Lynch, JP Morgan Chase, and Citigroup were all summoned to high-level talks over the weekend at the New York Fed’s headquarters in Manhattan.
One of the options discussed included the Wall Street giants buying the £15billion-plus of toxic property assets held by Lehman, which might make it easier to sell off the rest of the business.
BoA had been considering a joint takeover bid with U.S. buyout giant JC Flowers, and Chinese state investor China Investment Corporation."Although scalar fields are Lorentz scalars, they may transform nontrivially under other symmetries, such as flavour or isospin. For example, the pion is invariant under the restricted Lorentz group, but is an isospin triplet (meaning it transforms like a three component vector under the SU(2) isospin symmetry). Furthermore, it picks up a negative phase under parity inversion, so it transforms nontrivially under the full Lorentz group; such particles are called pseudoscalar rather than scalar. Most mesons are pseudoscalar particles." (finally explained to a captivated Celestine by Professor Brian Cox on Wednesday 27th June 2012
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