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  • #31
    I was on the team of 8 people writing the software Lehman used to trade CDSes.

    A couple of my colleagues on the team are working this weekend. They're running massive SQL reports and piping them to pivot tables for senior management. It's something we first did about 10 months ago, so the code already exists.

    It is not known how much in CDS contracts Lehman has.

    Oh, yes that is known...
    "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
    Ben Kenobi: "That means I'm doing something right. "

    Comment

    • #32
      If you can, try to parlay your experience into working on the clearinghouse which should result from all this.

      Oh, yes that is known...
      Apparently, that is info that the WSJ is not privy to.
      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

      Comment

      • #33
        Not much I can say about it, I didn't spend a lot of time analyzing the business behind it. I worked on the tech side.
        "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
        Ben Kenobi: "That means I'm doing something right. "

        Comment

        • #34
          Looks like we're going to try the bankruptcy option. To me, this is the best option. Lehman is not too big to fail and there would have been a long line of companies feeding at the trough if Lehman were spared.

          The lede from Bloomberg...

          Wall Street Prepares for Potential Lehman Bankruptcy (Update2)

          By Craig Torres

          Sept. 14 (Bloomberg) -- Wall Street readied for a potential Lehman Brothers Holdings Inc. bankruptcy after Bank of America Corp. and Barclays Plc pulled out of talks to buy it and the government indicated it wouldn't provide funds to prevent a collapse.

          Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight.

          ``The purpose of this session is to reduce risk associated with a potential Lehman'' bankruptcy, the International Swaps and Derivatives Association said in a statement today. The ISDA includes 218 banks, brokerages, insurance companies and other financial institutions from the U.S. and abroad.

          The step indicates Wall Street lacks confidence that three days of talks to find a buyer for Lehman, held at the Federal Reserve Bank of New York, will be successful. Treasury Secretary Henry Paulson, who has led the talks with New York Fed President Timothy Geithner, was adamant two days ago against using taxpayer funds to help a purchaser take Lehman over.

          U.S. regulators are betting that the financial system will be able to withstand the failure of a large institution without severe disruptions to an already weak economy.
          Bloomberg - Are you a robot?
          http://www.bloomberg.com/apps/news?pid=20601087&sid=aNMh_8NRE6QM&refer=worldwide
          I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

          Comment

          • #35
            Well, fingers crossed then.

            Originally posted by DanS
            Wow, I would have to wonder whether that cash has been repurposed if it has indeed not already been used.

            Where did you see indications of this?
            The number comes from Preqin, but they only provide free sample pages for their reports: http://www.penews.com/today/index/content/2451714305
            I thought I had read KKR get mentioned re Lehman, but if they were involved, they no longer seem to be.
            DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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            • #36
              well Lehmann out
              BBC NEWS | Business | Lehman set to go into insolvency
              http://news.bbc.co.uk/1/hi/business/7615712.stm
              BBC, News, BBC News, news online, world, uk, international, foreign, british, online, service

              Preparations are being made for US investment bank Lehman Brothers to file for bankruptcy protection.

              The firm was pushed to the brink on Sunday after UK bank Barclays pulled out of talks to buy most of Lehman.

              If no new financing is found before Wall Street opens on Monday, Lehman will have to seek so-called Chapter 11 bankruptcy protection.

              This could result in a severe shock to the global financial system, as banks unwind their complex deals with Lehman.

              It could take weeks or even months to complete and put banks around the world in a state of extreme uncertainty.




              Merril in by BoA

              Portfolio
              http://www.portfolio.com/views/blogs/market-movers/2008/09/14/lehman-the-end-game?addComment=true
              =


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



              Bank of America and Merrill Lynch & Co. Inc. are in merger discussions, according to people familiar with the matter.

              Details of the terms under discussion weren't immediately clear but Merrill's board was reportedly meeting to approve an offer at $29 a share, which would value the firm above $40 billion.

              Merrill's stock came under pressure last week as concerns about Lehman Brothers Holdings Inc. fanned worries about Merrill's health. Merrill's shares dropped 36% in the week, cutting $15 billion off of its market value. As of Friday, the firm was worth $26 billion.

              The talks come amid a Wall Street scramble to sort out a potential liquidation of Lehman Bros. Bank of America had considered buying Lehman, but when those talks failed to result in a deal, BofA turned its attention to Merrill, which is considered a better fit for the bank.

              Much remains uncertain and conditions were fluid. A deal could be announced this evening.


              will be an interesting Monday
              Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
              GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"

              Comment

              • #37
                Why would BoA pay a premium for Merrill, when they'll be able to buy it for $1 tomorrow? And such a huge premium? Doesn't seem to make sense.

                Well, at least we know who has the cash and is willing to spend.
                I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                Comment

                • #38
                  Originally posted by Colonâ„¢
                  The number comes from Preqin
                  Hmmm...
                  I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                  Comment

                  • #39
                    Originally posted by Asher
                    What group did you work with?
                    I was in the Credit Derivatives bit of the Fixed Income Group or rather the IT group that assisted them. So yeah, I was in the eye of the storm when it started.
                    "The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists."
                    -Joan Robinson

                    Comment

                    • #40
                      The headline from the WSJ online...

                      Crisis on Wall Street as Lehman Totters,
                      Merrill Seeks Buyer, AIG Hunts for Cash
                      U.S. Opts to Avoid Lehman Rescue,
                      Stirring a Momentous Weekend for American Finance;
                      Traders Brace for a Chaotic Monday
                      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                      Comment

                      • #41
                        Apparently, it's AIG that's getting connected to KKR: http://www.bloomberg.com/apps/news?p...d=a.9_Udofvd0o
                        DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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                        • #42
                          Wall Street could get a respite, with Japan and China closed for a holiday tomorrow. I guess things will get rolling at about 4:00 am Eastern time when the European markets open.

                          If the Fed was hoping for help from Asia, this was the exact wrong weekend to do a deal. We had a deal with an Asian company that finished on Friday morning, with the execs from the Asian company going on vacation and being incommunicado shortly afterward.
                          I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                          Comment

                          • #43
                            Could be quite unfortunate. Japanese banks are still healthy AFAIK, but I wouldn't if they'd have dared a bold move.

                            Maybe a positive note is that this chain of bailouts and massive pumping of liquidity into the system (leading to new bubbles) after every crisis ever since LTCM is finally coming to an end.
                            DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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                            • #44
                              What do China and Japan got to celebrate together anyway?
                              DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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                              • #45
                                Somewhat OT, but EA has withdraw its takeover offer of Take 2. I wonder if trouble getting the deal financed was part of the cause.
                                DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.

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