Items of Interest:
New York Times:
Lehman Files for Bankruptcy; Merrill to Be Sold -- In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, filed for bankruptcy protection and hurtled toward liquidation after it failed to find a buyer...
Lehman folds with record $613 billion debt -- Lehman Brothers Holdings is closing its doors with more than $600 billion of debt -- the biggest bankruptcy in U.S. history....
Wall Street Journal:
Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash -- The American financial system was shaken to its core on Sunday. Lehman Brothers Holdings Inc. filed for bankruptcy protection, and Merrill Lynch & Co. agreed to be sold to Bank of America Corp...
Lehman Files Biggest Bankruptcy as Suitors Balk; Shares Plunge -- Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history...
Financial Russian Roulette — Will the U.S. financial system collapse today, or maybe over the next few days? I don't think so — but I'm nowhere near certain. You see, Lehman Brothers, a major investment bank, is apparently about to go under. And nobody knows what will happen next.
Discussion:Washington Post: A New Architecture For the Financial WorldSteve Benen / Washington Monthly: ‘FRIGHTENING AS HELL’.... Reading the morning papers can often be a little discouraging.Noah Millman / The American Scene: THE END OF THE BEGINNING — I really, really hope I get to eat my words here.Arnold Kling / EconLog: Hurricane Lehman Update, 7 AM ESTMaha / The Mahablog: Economy in Meltdown? — When Paul Krugman begins a column this way …Los Angeles Times: Wall St. braces for Lehman bankruptcy; BofA will buy MerrillBill Anderson / LewRockwell.com Blog: A Tale of Two CommentatorsKaroli / Bang the Drum: Merrill, Lehman, Bank of America: Financial Chaos?Robert Stein / Connecting.the.Dots: Money Under the Mattress?Lambert / Corrente: No, it's really not the economyJonathan Zasloff / The RBC: Leadership We Can Believe In — I make no pretense toward …Prairie Weather: The San Andreas fault in America's financial markets is shaking …Reliapundit / THE ASTUTE BLOGGERS: BEST REASON NOT TO WORRY ABOUT A FINANCIAL SYSTEM MELTDOWN …Mary / Pacific Views: WAITING FOR GODOT — Paul Krugman asks about the looming financial crisis:Calculated Risk: Lehman, AIG: Late NightTyler Cowen / Marginal Revolution: The worst case scenario?Wall Street Journal: Barclays Walks from Lehman Deal; Likelihood for Transaction Narrows
Discussion:Hugh Hewitt / Townhall.com: McCain-Palin On Wall Street CrisisMark Halperin / TIME.com: Obama Statement on Situation in Financial MarketsMichael Falcone / The Caucus: The Early Word: Responding to Wall Street's WoesJohn Riley / Spin Cycle: Monday ten: Watch out for Wall StreetBrad DeLong / Grasping Reality with Both Hands: It is Not About *You* — Why friends don't let friends read the Politico.
Obama-Friendly Lehman Bros. to file Chapter 11 bankruptcy
Discussion:Alan Stewart Carl / Donklephant: Financial Industry Woes ContinueChris / AMERICAblog News: Obama: “This country can't afford another four years of this failed philosophy”
Discussion:Richard / The Peking Duck: The gathering storm — [This is the second or third TPD post …McQ / QandO: IT'S GOING TO BE A CRUMMY DAY ON WALL STREETBird Dog / Maggie's Farm: Perfect Storm — Wall Street's perfect storm.Washington Post: How Washington Failed to Rein In Fannie, Freddie
Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash
Discussion:City Room: Watching the Wall Street MeltdownRobert Stacy McCain / The Other McCain: New McCain ad: ‘Crisis’Sean Hackbarth / The American Mind: LEHMAN GOES BANKRUPT. MERRILL LYNCH SOLD. WALL STREET FREAKING OUT.Dealbreaker: Bank of America Reaches Deal To Buy Merrill LynchMelissa McEwan / Shakesville: It's the Economy, StupidYves Smith / naked capitalism: NY Times: Lehman Filing For Bankruptcy (Update: Gross Sees “Tsunami")
US in ‘once-in-a-century’ financial crisis : Greenspan
Statements on Wall Street
Discussion:Steve Benen / Washington Monthly: THE CANDIDATES REACT TO WALL STREET.... Given the trauma …
Greenspan: This Is The Worst Economy I've Ever Seen
Discussion:Jill Tubman / Jack & Jill Politics: Greenspan: America Can't Afford McCain's Tax CutsWall Street Journal: Bank of America Reaches Deal for Merrill
For immediate release — The Federal Reserve Board …
Discussion:Tobin Harshaw / The Opinionator: Following the Fed — So with Lehman Brothers on the ropes …Fester / Newshoggers.com: Get a bigger bag to hold
Krishna Guha / Financial Times: World's biggest banks join forcesDavid Zaring / Conglomerate: Who Can Access the Fed's Discount Window?Tom Petruno / Money & Company: Latest developments on Wall Street's momentous dayGreg Ransom / PrestoPundit: NEVER FORGET THAT THIS FINANCIAL CRISIS was created by the …Barry Ritholtz / The Big Picture: Live Blogging CNBC Lehman ShowCalculated Risk: Fed Announces New Liquidity InitiativesEchidne / ECHIDNE OF THE SNAKES: Wall Street's Troubles Are Yours, Too...Mark Thoma / Economist's View: Bankruptcy for Lehman — Okay, things are coming together …Yves Smith / naked capitalism: WSJ: Fed Expands Liquidity Facilities to Include EquitiesWall Street Journal: Fed Plans Expanded Lending FacilitiesIan Welsh / Firedoglake: Lehman and Merrill Hit the Fan (Updated)
The fit hits the shan on Wall Street
Discussion:Walter Alarkon / The Hill's Blog Briefing Room: MORNING READ — With Wall Street facing a crisis Monday …Reuters: Facing crisis, automakers seek aidReal Time Economics: The Government Stood Firm. Was It the Right Call?
AIG Scrambles to Raise Cash, Talks to Fed
Discussion:Associated Press:Megan McArdle: Should the Fed start bailing out insurers?Real Time Economics: Can the Fed Help AIG? Will It?Dean Baker / TPMCafe: When Will We Start Reforming Wall Street?Liza Porteus Viana / Political Machine: McCain's ‘Crisis’ AdJohn Quiggin / Crooked Timber: How much is AIG worth? — Now that Lehman Bros and Merrill Lynch …Mark Adams / American Street: No Mo Merrill LynchXeni Jardin / Boing Boing: “America's financial system was shaken to its core on Sunday.”New York Times: Big Insurer Seeks Cash as Portfolio PlummetsKen Houghton / Angry Bear: Roubini's not wrong, but... Let's stipulate what “everybody knows”:Jill / Brilliant at Breakfast: Fasten your seat belts, folks — tomorrow is going to be a VERY bumpy rideYves Smith / naked capitalism: AIG Asks the Fed for HelpBarry Ritholtz / The Big Picture: Lehman Brothers Liquidation LikelyHilzoy / Washington Monthly: Wall StreetDave Johnson / Seeing the Forest: Stuff Going On — Wall Street — On A SundayCalculated Risk: AIG Rejects Private Equity, Asks Fed for Help
Wall Street awakes to 2 storied firms falling
Discussion:Reuters: Edgy Wall Street waits for AIG planEd Morrissey / Hot Air: McCain ad: “Crisis”Agence France Presse: Lehman bankruptcy shakes world financial systemGordon Smith / Conglomerate: Monday? — This news about Lehman and AIG and Merrill …
Fuld's Subprime Bets Fueled Profit, Undermined Lehman -- Richard Fuld, a one-time international squash player accustomed to working the angles, finally found one he couldn't master.
The longest-serving chief executive officer on Wall Street battled for more than a year to contain the fallout from Lehman Brothers Holdings Inc.'s bad bets on real estate. Fuld's defense of the 158-year-old firm ended yesterday when Barclays Plc and Bank of America Corp. walked away from buyout talks, forcing the company to file for bankruptcy.
Over 14 years, Fuld, 62, turned a money-losing bond trading shop into a full-service investment bank. He won acclaim from Wall Street leaders such as Lazard Ltd. chief Bruce Wasserstein, who on June 4 called him ``very able.'' Fuld joined the circle of CEOs sought-after by boards, such as the New York Federal Reserve's. Fuld ultimately gambled almost four times the firm's shareholder equity last year on mortgage securities that he insisted were hedged by other bets...
- Ultimatum by Paulson Sparked Frantic End - Deborah Solomon et al, WSJ
- Chaos Doesn't Rule Out Recovery - Anatole Kaletsky, Times of London
- Wall Street's Perfect Storm - David Henry, BusinessWeek
- Where Did It All Go Wrong? - David Weidner, MarketWatch
- Lehman's Warning Call for Wall Street - Sloan & Boyd, Fortune
- A Lesson from Lehman - Editorial, New York Sun
- Lehman Is Toxic at Any Price - Peter Morici, RealClearMarkets
- Hubris--Is Thy Name Richard Fuld? - Frank Partnoy, Financial Times
- A Stunning Fall for Merill Lynch - Louise Story, New York Times
- Wall Street Privatizes U.S. Government - Charles Dumas, Daily Telegraph
- The Choice: Capitalism or Regulation - Joseph Calhoun, RealClearMarkets
- Too Few Regulations? No, Just Ineffective Ones - Tyler Cowen, NY Times
- The Brave New World of U.S. Finance - Randall Forsyth, Barron's
- Lehman Brothers' Fall Reflects Wall Street's Flaws - Shawn Tully, Fortune
- Why It Was Right To Let Lehman Fail - Avinash Persaud, Financial Times
- Why Lehman Brothers Wasn't Saved - Felix Salmon, Market Movers
- The Japan Lesson: US Must Own Up - Justin Lahart, WSJ
- Why The Fed Won't Cut Rates - Albert Bozzo, CNBC
- A Weekend That Reshaped American Finance - The Economist