Friday, September 12, 2008

NY Fed Holding Emergency Meeting On Lehman's Future

From WSJ:

In attendance are New York Fed President Timothy Geithner, Mr. Paulson and Securities and Exchange Commission Chairman Christopher Cox. The Wall Street executives included Morgan Stanley Chief Executive John Mack, Merrill Lynch Chief Executive John Thain, J.P. Morgan Chase CEO Jamie Dimon, Goldman Sachs Group CEO Lloyd Blankfein, Citigroup Inc. head Vikram Pandit and representatives from the Royal Bank of Scotland Group PLC and Bank of New York Mellon Corp., among others.

-EPJ Newsdesk

1 comment:

  1. Wow; this sure reminds Sparky of the Long Term Capital Management (LTCM) collapse about ten years back.

    It’s also interesting to note that some of the same slippery players are present at this meeting!

    Also interesting is this: The main reason LTCM management got into so much trouble with greed-drive leverage is because the “industry,” eager for LTCM’s growing business, fronted them far too much cash, and at far too low a cost.

    This time around, the same thing happened; but this time it was the Federal Reserve under Greenspan that cranked out way too much overly cheap money; and this time isn't wasn't LTCM that got greedy, it was the entire industry!!

    We’re in very, very deep trouble folks; just watch!

    Lehman is but the tip of the proverbial iceberg; Wachovia Bank (WB) is close behind; Merrill Lynch’s balance sheet is obviously cooked; Citigroup’s clearly bordering on insolvency, and once its Level III crap is eventually marked to market it will be bankrupt; and the infamous SEC-evading John J Mack will also see Morgan Stanley continue to crumble like an over-cooked cookie.

    Stay tuned folks; and unless you want to play the US-based financials Put Option game, stay safely sidelined.