Tuesday, September 16, 2008

Lehman bankrupt already, Merrill bought, AIG going to collapse: Where does it all end?

Lehman bankrupt already, Merrill bought, AIG going to collapse: Where does it all end?

The global financial system is now crying for help. Lehman already bankrupt, Bank of America has bought Merill for $40 billion USD. AIG is going to next Lehman soon.

AIG has asked for 40 million USD loan from government.

These news are very uneasy to hear really. But the key question at this point is "What will make it stop?"

I am trying to present the small stories about bankruptcy of a 158-year-old financial firm, the acquisition of one of the most storied names on Wall Street, and a major restructuring of one of the world’s largest insurance companies

Lehman Brothers Holdings Inc -- > was expected to file for bankruptcy two days back. That outcome was far from certain as Bank of America was expected to bid for the “good” par of Lehman, but US declined to backstop Lehman’s bad part so Bank of America withdrew its offer and now Lehman shareholders will be wiped out. Still it is not clear how severely the Lehman’s Bankruptcy will hurt global markets

Merrill Lynch & Co --> Bank of America has agreed to pay $29 per share for Merill. This is really great news because it will give Merrill shareholders a $12 a share premium and it takes out what would have been the next firm to fail.

AIG (American International Group) --> AIG is currently under investigation to make sure that it has sufficient capital reserves to pay policy holders and remain solvent. AIG plans to announce a major restructuring Monday. Might be it will “dispose its aircraft-leasing arm, International Lease Finance Corp” valued at more than $50 billion. It is estimated that AIG needs $18 billion to stave off credit downgrades. If AIG don’t do that then it will be bankrupt completely


Meanwhile, how will global markets react to the shockingly rapid implosion of the US banking industry? Is there anything that can be done to stop the slide? If it were not so serious, I would say this feels like the end of an episode of Batman. Unfortunately, it's all too real and it's going to spread the pain around for some time to come. Meanwhile futures point to a bloodbath in global markets over the next 24 hours.

I don't know what will stop the bleeding.


4 comments:

  1. Hi this is Chirag I have seen you write well but you dont do proper font formating.
    More over your content is nice but not well marketed it seems.
    Superstars Gems took your report and published in his blog so I advice you to take a copy right of your work online.
    You can do that at CC.
    I would ask you if you willing to write for my site.
    Chirag Jethmalani.
    IndianMoneyPlus.Com

    ReplyDelete
  2. HI Chirag,

    I am really thanks to you for your valuable comments... ya i agree with you that my articles are not properly formatted but i assure you that these are my original work. really written by me... if i copy something soemthing from somewhere then i always write references.

    i felt really bad when i saw my original work on superstargems blog. it is really a humiliating feeling as credit is going to another person. I wrote him about this but he didnt replied.

    I would love to write for your site as well....

    pls get in touch with me at
    bsensediamonds.blogspot.com

    ReplyDelete
  3. Hi Deepak.
    Thanks.
    You can write on my blog you can mail me the stock report and I will publish it with a link to your blog.
    Mail me at contact@indianmoneyplus.com
    You really write well you deserve at least 500 visitors a day.
    And why don't you monetize your blog.
    - Chirag Jethmalani.

    ReplyDelete

  4. Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    DLF

    ReplyDelete