Author Topic: Lehman Done Futures Down Heavy  (Read 802 times)

SUPREME BEING

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Lehman Done Futures Down Heavy
« on: September 14, 2008, 05:33:55 PM »
Interesting to see what will happen when we open tomorrow. LEH are done - they will file for bankruptcy - waiting for definite news on this.

Merrill rumour that BAC will buy them at $26 a share - sounds bullshit to me probably instigated by Merrill guys, they are dreaming if they think they can get $26 when MER has already stopped underwriting bonds. Could be the rumour to prevent the financials from getting crushed tomorrow. Me thinks the FED is pushing hard for BAC to step and take MER at their shareholders expense, i am sure they would not want sovereign wealth fund to fail (Singapore owns 14% i believe).

Futures down heavy already - can't stay up all night however, gonna rest now and wake in a few hours to be fresh for the exciting day tomorrow.

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Re: Lehman Done Futures Down Heavy
« Reply #1 on: September 14, 2008, 05:43:44 PM »
Wow this is crazy for an overnight session. Me thinks someone know something for tomorrow.

I really hope some good news can come out soon, i hope we can get some capitulation tomorrow. Would hate to see us really fall into hard times, but i still have hope in the good old USA.

It is sad to think a lot of people just lost part of their retirement with their 401ks.

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Re: Lehman Done Futures Down Heavy
« Reply #2 on: September 14, 2008, 05:48:09 PM »
Bank of America to buy Merrill Lynch for $29/share: CNBC, citing WSJ.

Haha guess FED backed them into a corner - buy the risk of Lehman or get Merrill at a premium.

Hold shit this looks like a fucking buy - if this Merrill deal goes through at that share price market will be a monster buy. All the Lehman woes will be eroded.

calmus

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Re: Lehman Done Futures Down Heavy
« Reply #3 on: September 14, 2008, 06:02:57 PM »

If I was BofA, I would say "fuck you very much." Merrill's not worth a cent above $20, and that's being generous.

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Re: Lehman Done Futures Down Heavy
« Reply #4 on: September 14, 2008, 06:10:09 PM »
Mccain says this recession is all in your head, guys.

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Re: Lehman Done Futures Down Heavy
« Reply #5 on: September 14, 2008, 06:11:02 PM »
http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage

In a rushed bid to ride out the storm sweeping American finance, 94-year-old Merrill Lynch & Co. was late Sunday in talks to sell itself to Bank of America Corp. for roughly $44 billion.

Such a deal, which was being worked out in 48 hours of frenetic negotiating, could instantly reshape the U.S. banking landscape, making the nation's prime behemoth even bigger.

Driven by Chief Executive Kenneth Lewis, Bank of America has already made dozens of acquisitions large and small, including the purchase of ailing mortgage lender Countrywide Financial Corp. earlier this year. In adding Merrill Lynch, it would control the nation's largest force of stock brokers as well as a well-regarded investment bank.

A combination would create a bank of vast reach, involved in nearly every nook and cranny of the financial system, from credit cards and auto loans to bond and stock underwriting, merger advice and wealth management.

It would also show how the credit crisis has created opportunities for financially sound buyers. At $44 billion, or roughly $29 a share, Merrill would be sold at about two-thirds of its value of one year ago, and half its all-time peak value of early 2007. Merrill shares changed hands at $17.05 each on Friday, after falling sharply in the wake of Lehman's looming demise.

"Why would Bank of America do this?" said analyst Nancy Bush at NAB Research LLC in Annandale, N.J. "Ken Lewis always likes to buy the biggest thing he can. So why not this? You are master of the universe, basically."

Bank of America and Merrill Lynch wouldn't comment on any discussions.

Merrill would give Bank of America strength around the world, including emerging markets such as India. And Merrill is also strong in underwriting, an area Bank of America identified last week at an investors' conference where it would like to be more aggressive

Benny B

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Re: Lehman Done Futures Down Heavy
« Reply #6 on: September 14, 2008, 06:50:55 PM »
Merrill closed at $17 Friday. Glad I unloaded my shares before the all the financials went to shit.  ;D

Don't like a BoA Merrill deal at all. Very bad for the industry long term.
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Re: Lehman Done Futures Down Heavy
« Reply #7 on: September 14, 2008, 07:01:57 PM »
Deal has been agreed to. BoA buying Merrill for $44 billion.

http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage

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Re: Lehman Done Futures Down Heavy
« Reply #8 on: September 14, 2008, 07:09:02 PM »
Deal has been agreed to. BoA buying Merrill for $44 billion.

http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage
I maintain that this is VERY bad for the financial services industry long term.

All eyes on Goldman and Morgan now, the last of the mohicans.
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Re: Lehman Done Futures Down Heavy
« Reply #9 on: September 14, 2008, 07:18:26 PM »
what does this do short-term?  prevent a monday morning drop of 2000 points?


Fury

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Re: Lehman Done Futures Down Heavy
« Reply #11 on: September 14, 2008, 08:51:58 PM »
I maintain that this is VERY bad for the financial services industry long term.

All eyes on Goldman and Morgan now, the last of the mohicans.

Some people are talking of either of MS-Wachovia merger of GS-Wachovia merger. I can't personally see either of those two going down as they have been a step ahead of ML, Lehman and BS for a while now but who knows. Can't say I'm too informed on MS and GS balance sheets. Most people thought ML would get out of their problems alive and they imploded over a weekend.

MS, maybe, but it would be the end of days if GS collapsed. But I think they're far too connected to ever end up like that. Too many connections, powerful alumni, etc. Just my opinion, though.