I predicted 5 days ago that Lehman is finished on Sunday... I guess we'll find out if I was right...
Sat Sep 13, 2008 at 11:28:27 PM EDT
It won’t hit the news until tomorrow or Monday, but Lehman Brothers, the nation’s fourth largest investment bank, is no more. They follow Bear Stearns, the fifth largest investment bank, who expired last April, and the next on the chopping block will be Merrill Lynch, the third largest. Seeing a progression here?
In other news, J.P. Morgan, who acquired Bear Stearns this spring, also just swallowed Washington Mutual, an S&L that would have blown the FDIC out of the water, had they failed outright. Watch for Wachovia, or National City, or Fifth Third Bancorp, as the next bodies to drop among the walking wounded in the commercial banking sector.
The bailout of Fannie and Freddie has entered the realm of public discussion ... and their demise as independent entities is going to bury many smaller banks that were holding their preferred stock.