Monetary System

Update 04 Mar 2009: Marshall Auerback sent me a story about Dresdner bankers suing to get tens of millons in bonuses. Obviously the house in Kent and the private clubs and schools have to be paid for. His story here reminded me of this…

As we plan for another day in financial turmoil, I have to admit to preferring financial services industry consolidation through merger to bankruptcy. I was just reading FT Alphaville's post on a proposed Lloyds TSB takeover of HBOS (the…

It's been bothering me for some time -- the fact that Lehman failed and Merrill was taken out at a deal time value that was a significant premium to both book value and the prevailing price of its shares in the market. It seems rather…

It's done. Core Lehman is sold. Now the rest of the company can be liquidated. Barclays will buy the core assets for a measly $2 billion. For Lehman staff in the US, this has to be a relief. However, staff in London are probably left…

In yet another move by ratings agencies likely to roil markets, HBOS has been cut by S&P. Given the fact that HBOS is the biggest loser to date in the European banking sector in the wake of Lehman's collapse. This cannot be seen as…

One reason I came out this morning against the Fed and the U.S. Treasury's decision to allow Lehman Brothers to go bankrupt is the arbitrariness of its decision-making process. Lehman is easily more of a systemic risk than Bear Stearns and…

I am not a certified financial planner and therefore, do not give financial advice or investment advice. Anyone looking for financial advice is advised to see a independent certified financial planner to help them with their investments.The…

Updated 535PM EST on 16 Sep 2008 to reflect information from this press release:National City Completes $7 Billion Capital RaiseWhile all eyes were focused on Lehman Brothers this weekend, many other players were making their moves to shore…

Don't think that it is just the U.S. that has to worry about systemic risk. The Europeans have their own problems and the weaker financial institutions are getting absolutely killed in European trading right now. RBS is down nearly 13%.…

Update: 815AM EDT: Unable to find buyers in around the clock talks, Lehman Brothers has filed for bankruptcy protection. On Friday, it was learned that Lehman had hired bankruptcy attorneys. Now, the worst has come to pass: Lehman has…