Lehman Brothers dead, Merrill Lynch next?

[240 is Back]

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.

[calmus]

This is why oBama wins. People don't know half the shit thats out there.

[Benny B]

Can't see Merrill going down. No way.

[calmus]

Merrill loved the CDOs ... everybody knows they still have a shit-ton on their books.

[Benny B]

Merrill loved the CDOs ... everybody knows they still have a shit-ton on their books.

Yes, but they also have the largest nuber of financial advisors on Wall Street. They are technically the largest of the big boys in the investment banking business. I will agree that they thought they wiped their hands clean when they let E. Stan O'Neal go even after he'd made them a TON of money over the years, however, the bloodletting has continued under Thain. Thain's pay package is outrageous, by the way. No way should he have been brought in making that kind of money with the company in trouble.

[calmus]

Yes, but they also have the largest nuber of financial advisors on Wall Street. They are technically the largest of the big boys in the investment banking business. I will agree that they thought they wiped their hands clean when they let E. Stan O'Neal go even after he'd made them a TON of money over the years, however, the bloodletting has continued under Thain. Thain's pay package is outrageous, by the way. No way should he have been brought in making that kind of money with the company in trouble.

financial advisors are all well and good, but they don't pay the bills after SPitzer. 

Merrill's big, but we've seen some amazing shit come down the pike and i wouldn't be surprised if there's more.

firing o'neill and hiring quant jock thain was just window dressing.

Oh, and fuck lehman brothers.    they deserve that shit, although the people who are getting fucked are the low level guys.  still, they should have gone elsewhere.

[calmus]

lehman bros is the sarah palin of wall street.

[Benny B]

financial advisors are all well and good, but they don't pay the bills after SPitzer. 

Merrill's big, but we've seen some amazing shit come down the pike and i wouldn't be surprised if there's more.

firing o'neill and hiring quant jock thain was just window dressing.

Oh, and fuck lehman brothers.    they deserve that shit, although the people who are getting fucked are the low level guys.  still, they should have gone elsewhere.

Of course letting (brother) O'Neal go and hiring Thain was window dressing, however they were hoping for new results. Merrill was bringing in the chedda long before Spitzer.

Lehman is a drop in the bucket compared to Merrill. Take it from one who's worked for ML. I ain't saying they can't go down, but I would be shocked. The cavalry (I'm talking overseas Sovereign Funds) and the like will attempt to prop Merrill if necessary before they go down.  

[youandme]

lol 5 days ago