Wall Street, reality iceberg collide
In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, filed for bankruptcy protection and hurtled toward liquidation after it failed to find a buyer.
The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments.
But even as the fates of Lehman and Merrill hung in the balance, another crisis loomed as the insurance giant American International Group appeared to teeter. Staggered by losses stemming from the credit crisis, A.I.G. sought a $40 billion lifeline from the Federal Reserve, without which the company may have only days to survive.
The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence.
“My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I’ve ever seen,” said Peter G. Peterson, co-founder of the private equity firm the Blackstone Group, who was head of Lehman in the 1970s and a secretary of commerce in the Nixon administration.
[...]
Early Monday morning, Lehman said it would file for Chapter 11 bankruptcy protection in New York for its holding company in what would be the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago, the Associated Press reported.
Questions remain about how the market will react Monday, particularly to Lehman’s plan to wind down its trading operations, and whether other companies, like A.I.G. and Washington Mutual, the nation’s largest savings and loan, might falter.
Some details and opinions
Meltdown as bank collapses
Derivatives did it
Market collapse: 'no end in sight'
Expect run on other brokers, expert warns
‘Obsession with property must end’
In other good news
Vegetarians face brain shrinkage
Beer, wine and being fat don’t help, either.
Brain scans of more than 1,800 people found that people who downed 14 drinks or more a week had 1.6% more brain shrinkage than teetotallers. Women in their seventies were the most at risk.
Beer does less damage than wine according to a study in Alcohol and Alcoholism.
Researchers found that the hippocampus-the part of the brain that stores memories - was 10% smaller in beer drinkers than those who stuck to wine.
And being overweight or obese is linked to brain loss, Swedish researchers discovered. Scans of around 300 women found that those with brain shrink had an average body mass index of 27. And for every one point increase in their BMI the loss rose by 13 to 16%.
posted by Tom Nadeau at 5:45 AM
1 Comments:
Great article!
Post a Comment
<< Home