AMERICAblog: Asian markets fall hard, Europe drops 4% at opening
maudegonne
· 1 year ago
Funds have found that assets such as equities whose recovery from the prime brokerage division should have been straightforward are in doubt because of "rehypothecation". The small print of the contracts said that Lehman could use the securities itself, including lending them out to short sellers. This meant the assets were reclassified as unsecured, putting them further down the queue for repayment and raising the prospect of big losses. Hedge funds may have up to $70bn in Lehman prime brokerage accounts, with the value of rehypothecated non-cash assets estimated at $22bn.
Richard Perry, a partner at Simmons & Simmons, said: "One of the urgent issues the administrators have got is to find out which of the long securities positions held in prime brokerage with Lehman Brothers International Europe are beneficially owned by clients and which are effectively exposed to LBIE's credit risk." The prime brokerage assets will be dwarfed by the value of OTC derivatives contracts, in which Lehman had become a big player. It was harder to close these positions than to recover assets such as shares when Lehman was heading for disaster because to do so would have needed Lehman's agreement. http://www.independent.co.uk/news/business/news...
DCinDC
· 1 year ago
The real story behind this economy and its connection to John McCain:
I see the DOW sinking another 10% this week. Expect a whole bunch more states and companies looking for help with credit.... this is a real meltdown. http://www.bloomberg.com/apps/news?pid=20601087...
williamgeorge
· 1 year ago
European shares, however, trimmed early losses and U.S. stock futures suggested gains on Wall Street later in the day, possibly signalling some rethinking by investors about the longer-term chances of support for the financial sector. ------------------ williamgeorge Search Engine Optimization
GreyFoxThree
· 1 year ago
I dont get it. I thought this TRILLION DOLLAR bailout was supposed to HELP? Looks like Main Street America gets SCREWED yet again!
Yes, well I did warn that last Monday's NO vote on the bailout had NO CAUSAL NEXUS to the stock market plunge and that the bailout if passed, would do absolutely NOTHING to stave off the coming financial collpase.
Mark your calendars .... TOMORROW October 7, 2008 is a day that will live in infamy.
All Comments
Richard Perry, a partner at Simmons & Simmons, said: "One of the urgent issues the administrators have got is to find out which of the long securities positions held in prime brokerage with Lehman Brothers International Europe are beneficially owned by clients and which are effectively exposed to LBIE's credit risk." The prime brokerage assets will be dwarfed by the value of OTC derivatives contracts, in which Lehman had become a big player. It was harder to close these positions than to recover assets such as shares when Lehman was heading for disaster because to do so would have needed Lehman's agreement.
http://www.independent.co.uk/news/business/news...
http://www.keatingeconomics.com/
http://www.bloomberg.com/apps/news?pid=20601087...
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williamgeorge
Search Engine Optimization
Jiff
www.privacy-center.ru.tc
Mark your calendars .... TOMORROW October 7, 2008 is a day that will live in infamy.