rip fannie and freddie

[PSH]

Originally Posted by Danzig

i know in freddie and fannies cases the govt also said they have always assured people that bankers in general are insured by the govt-the whole full faith deal.
whether lehman qualifies is another story. guess it depends on whether the feds think lehman would affect more than just the national economy, as they mentioned global investing/economy regarding mac and mae.

With Lehman it definitely does not qualify affecting the national economy but the worry is all of the counter-party risk involved with Lehman on various financial instruments. I hear that the Feds aren't involved as of yet with Lehman and that there are 3 suitors: Barclays, B of A and HSBC. Expect the equity will go down to basically nothing (it is almost there) and then a firm or more than one firm will start to divvy up Lehman ......

WaMU, National City, Wachovia, Merrill, and hundreds of smaller financial institutions remain very questionable on their future outlook...

Its a mess.

[Danzig]

Originally Posted by PSH

With Lehman it definitely does not qualify affecting the national economy but the worry is all of the counter-party risk involved with Lehman on various financial instruments. I hear that the Feds aren't involved as of yet with Lehman and that there are 3 suitors: Barclays, B of A and HSBC. Expect the equity will go down to basically nothing (it is almost there) and then a firm or more than one firm will start to divvy up Lehman ......

WaMU, National City, Wachovia, Merrill, and hundreds of smaller financial institutions remain very questionable on their future outlook...

Its a mess.

i saw they're pursuing a buyer. pennies on the dollar no doubt.

[dalakhani]

Originally Posted by Danzig

i saw they're pursuing a buyer. pennies on the dollar no doubt.

More like "buyers". It would be interesting if anyone bought this monster whole. For what? Their contingent liabilities exceed their market cap by infinity.

This is a case where The Fed is going to have to exert some..."influence". The public is not going to stand for anything publicly funded in this case so they will have to go back to squeezing some other firms to make a deal work.

[Danzig]

http://www.msnbc.msn.com/id/26672904/

bankruptcy in the offing for lehman, no buyer. bank of america seems more interested in merrill lynch at this point, also in deep trouble.

[Danzig]

WSJ just reported bank of america is buying ML for $29 a share. wow.

barclays also out regarding buying lehman, but 'talks' are continuing.

[PSH]

Originally Posted by Danzig

WSJ just reported bank of america is buying ML for $29 a share. wow.

barclays also out regarding buying lehman, but 'talks' are continuing.

I think B of A overpaid by a huge huge amount (IMHO)....
That is quite a premium over the $17 share price that MER closed at...

Will provide a reason for a nice rally by the financials on Monday....

PSH

[dalakhani]

Originally Posted by PSH

I think B of A overpaid by a huge huge amount (IMHO)....
That is quite a premium over the $17 share price that MER closed at...

Will provide a reason for a nice rally by the financials on Monday....

PSH

Futures are getting hammered right now and treasuries are way up. Ten year is yielding 3.55.

My question is when are they going to start calling B of A and Chase quasi government entities?

[dalakhani]

Originally Posted by Danzig

WSJ just reported bank of america is buying ML for $29 a share. wow.

barclays also out regarding buying lehman, but 'talks' are continuing.

this fed is absolutely amazing.