BangleMan

My sister is an Associate at Lehman Bros in London and called this evening to say they have been told in all likelihood they will go into liquidation tomorrow and the 4000 jobs in London will go.......worrying times for her, but also the rest of the UK and world economy indeed !

The Dean

Bk of America also on verge of withdrawing..........

No disrespect to your sis but it's far less serious than if Fannie and Freddie had been allowed to fail last week - that would have been Armageddon........

Charismatic

RBS, Washington Mutual and AIG are looking like they'll slide. Bank Of America and Merril Lynch are looking at merging - circling the wagons for protection is more accurate.

What's that saying about it always being darkest before the dawn ?

I'd just like to point out that governments can continue to prop up banks but the market must still correct. Propping up financial institutions that played the game loose will ultimatly hurt the growth prospects of good businesses . At best it's prelonging the inevitable.

NorthernLad

Bit like the property market here

Charismatic

Sounds like it. Even in the UAE eventually reality will bite.

BangleMan

Well most experts disagree with your view on Lehman's collapse as not being likened to Armageddon....

A clip from today's Daily Mil for example.....

Describing the prospect of Lehman’s demise as ‘ Armageddon’, one source warned it could slash as much as 1,000 points off the value of the main U.S. stock exchange, the Dow Jones.

Such a precipitous fall - described by one expert as like a 'tsunami' - would drag other stock markets into the mire, including Britain’s FTSE 100.

Lehman has 4,000 workers based in London, many of whom are now likely to face the axe.

The crisis could also spark a cull of tens of thousands of jobs across the financial sector.

And it is not only workers in the City and Canary Wharf who will be left reeling if Lehman collapses.

The value of pensions could be seriously dented, affecting ordinary-people up and down the country, the credit crunch squeeze on mortgages could deepen and the Government’s attempts to relaunch the economy could suffer.

Charismatic

Just filed for chapter 11.

IndieG

Just out-Lehman files for bankruptcy and BOA has bought ML

Charismatic

That was quick, only heard romours of it a 6 weeks ago . Damn RSS feed still hasn't told me!

Edit: Indie do you work in the financial services industry then? You seem very up-to-speed on current events.

Inselaffen

its a good job none of the Corporate Law firms in London wanted me as a trainee. looks like lean times ahead for city law firms.

benzonar

All those traders and bankers losing their jobs.

Well if you expect to make massive bonuses in boom years, you have to accept the shit may hit the fan at some point. From my time at Goldman Sachs, I doubt I will shed a tear over any of them.

NorthernLad

I just read 'Beer and Loathing in the Square Mile', was interesting read as a lot of it rang true.

I'll have little sympathy for the bankers there that I had the misfortune to meet.

Inselaffen

can't see many people having much sympathy with corporate bankers.

just hope they banked their huge bonuses in the good times.

Charismatic

Not everyone who works there make telephone digit salaries, most are normal people who work in back offices.

Charismatic

Will probably be downgraded three levels now .