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Lehman Brothers Files for Bankruptcy !!

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Massive Shifts on Wall St.Troubled Investment Bank To File for Bankruptcy http://www.washingtonpost.com/... Heather Landy and Neil IrwinWashington Post Staff WritersMonday, September 15, 2008; A01NEW YORK, Sept. 15 -- Lehman Brothers announced early Monday morning that it will file for bankruptcy, becoming the largest financial firm to fail in the global credit crisis, after federal officials refused to help other companies buy the venerable investment bank by putting up taxpayer money as a guarantee.The failure of the nation's fourth-largest investment firm offers a profound test of the global financial system, and government and private officials had been bracing Sunday night for an upheaval in a range of financial markets that have never before experienced the bankruptcy of such a large player. To keep cash flowing normally through these markets, the Federal Reserve announced new lending procedures, while 10 major banks combined to create a new $70 billion fund.After a marathon series of negotiations over the weekend, Federal Reserve and the Treasury stepped aside to allow a wrenching transformation of Wall Street to proceed. After galloping to the rescue of other major financial institutions in recent months, the federal government drew the line with Lehman Brothers, ignoring pleas from would-be buyers of the company who insisted on receiving federal backing for its troubled assets.Leaders of the Federal Reserve and Treasury Department decided that Lehman was unlike the investment bank Bear Stearns, whose sudden collapse in March threatened the world financial system, or Fannie Mae and Freddie Mac, whose potential insolvency did the same.In betting that Lehman could be allowed to fail without catastrophic consequences, New York Federal Reserve President Timothy F. Geithner, Fed Chairman Ben S. Bernanke, and Treasury Secretary Henry M. Paulson Jr. were making it clear that struggling financial firms cannot count on a bailout.The decision not to intervene carries the risk that the ripples of Lehman's failure will prove impossible to contain. What worries regulators and Wall Street is a massive, multitrillion-dollar lattice of interlocking financial instruments known as derivatives. The most worrisome to bankers are "credit default swaps," in essence a form of insurance against corporate failures. If the financial firms themselves fail, the value of the insurance they have written will be tested as never before.

Channel: News & Politics
Uploaded: December 31, 1969 at 5:59 pm
Author: TheAlexJonesChannel

Length: 04:15
Rating: 4.80
Views: 9890

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39rc6cf (December 31, 1969 at 5:59 pm)
Republican plan B ! Privatize profits...Socialize losses....and don't forget to outsource everything else!!!Everyone will suffer for at least twenty years after what Bush has done to our country!!You can make it longer if you like... with another 4 years by voting for McBush !!!!Yes indeed. Sodomize the losses and put all our social security checks into the failing stock markets. Lock box, anyone? Put McBush and Palin's bush in office and we have a nightmare worse than 1929.OUTSOURCE McCAIN !
5xmama (December 31, 1969 at 5:59 pm)
Republican plan B ! Privatize profits...Socialize losses....and don't forget to outsource everything else!!!Everyone will suffer for at least twenty years after what Bush has done to our country!!You can make it longer if you like... with another 4 years by voting for McBush !!!!
39rc6cf (December 31, 1969 at 5:59 pm)
The Romans condemned Jesus...if he came back today they would kill him for his Jewish-ness all over again especially if he was dark skinned, brown eyed with kinky black hair!!!!Dark skinned, brown eyes with kinky black hair? Isn't that Barack Obama,God love him, and not Emmanuel the carpenter? Whattsa matta, you?
39rc6cf (December 31, 1969 at 5:59 pm)
Cindy McLame TURNS ME OFF.She's no more than a puppy dog following around the albino from cactusville. She talks like a fool and looks like a floozie. I think John ought to make a move on Sarah before she goes to jail because of "Troopergate."
5xmama (December 31, 1969 at 5:59 pm)
As far as the cialis goes...I am sure old McLame needs it with his young wife....tho' she looks asexual and frigid..It is sad they cannot cure the common cold or M.S or cystic fibrosis...but can help old geezers and the impotent with their boners!!! Terrific........
5xmama (December 31, 1969 at 5:59 pm)
Crazy zealots all over the place...just as bad as the Muslim suicide bombers...look at what that Uni-bomber did and that was an American???? The Romans condemned Jesus...if he came back today they would kill him for his Jewish-ness all over again especially if he was dark skinned, brown eyed with kinky black hair!!!!
5xmama (December 31, 1969 at 5:59 pm)
Probably true...it is even predicted for 2012 in the Mayan calendar....one way to get rid of Republicans at last...I would head for Alaska ( one of the last refuges according to the Rapture freaks) but I can't stand the moose killer Sarah!!!
5xmama (December 31, 1969 at 5:59 pm)
Right on !!!!!!
39rc6cf (December 31, 1969 at 5:59 pm)
If Congress passes that emergency trillion dollar bailout, there'll be no tax relief for anyone. In fact, just the opposite. Someone's got to pay the piper and guess who? WE or US depending if you see Russia from Alaska. So Barack's plan to relieve us 95% and hurt 5% and McCain's plan to sit in the bathtub, leave wind and bite at the bubbles will not work.But of course the government can choose to do nothing which will make for long bread lines and soup kitchens.Yet,we spend12 bil/month inIraq
bigdog49094 (December 31, 1969 at 5:59 pm)
39Mama does not like to stay on topic which is the economy and the truth is Obama and McCain both propose bigger gov't and more and more federal spending as the way out of the nation's economic problems and I don't see how charging more on my credit card makes me richer.
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