In March was Bear Stearns. Now, in September 2008, Lehman Brothers.
Then I wrote an article entitled “the bankruptcy of the year“, but the year was not yet over and is the turn to Lehman. In addition, Merrill Lynch has been purchased by Bank of America, It seems a covert rescue operation, as Merrill also entered the bets on the banks who were suffering most in the USA.
This reminds me that not many months ago I read that some analysts said that the crisis subprime it lacked the bankruptcy of a large bank. It was not enough the Bear absorption, but that required a bankruptcy. This makes sense if we think that in absorbing the risks of the absorbed are borne by the buyer, with what can be said that in some ways the balance is not restored at all. The shareholders of the Bank seller lost much of the value of their shares but not everything. The total money “disappeared” the market is lower than that which may disappear in a bankruptcy.
The amounts of money “disappeared” managed with respect to the failure of subprime was calculated quite above what it had already emerged as losses in big banks and was as much as to break one. This is the turn of Lehman, that has not found a comprador-salvador to rescue, whose losses and writedowns in the third quarter of the year have increased an 14% with regard to the second quarter of the year, up to 5.900 $ million.
Worldwide losses and depreciation of the hundred largest banks worldwide reach the 15.700 millions of dollars in the third quarter of the year, while in the second quarter it exceeded 115.000 millions, and since the outbreak of the crisis subprime, the cost of sub-prime now exceeds the 506.100 millions of dollars among the 100 largest banks in the world, According to Invertia.
In addition this bankruptcy has had serious side effects, because this company had a very high debt that had been sold worldwide broadcast. Even several Spanish banks had used these bonds as guarantees for products “guaranteed” that then turned out not to be entirely guaranteed, Therefore the guarantee were Lehman bonds. This has led to the disappearance of billions of dollars from the bond market, also causing distrust of the market reaches bonds making investment funds deemed safe, refuge for those fleeing the stock market, were a death trap and fell almost as much as the same bag.
Goodbye Lehman Brothers!!
We hope that you're the last and not fall over.