You can't sleep on the markets on a Sunday anymore: Major Lehman Bros. Developments

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rollingsound

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Robert Wolf, chairman of the Americas at UBS AG, center, arrives at the Federal Reserve Bank of New York, in New York on Sept. 14, 2008.
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Wow what a shitstorm....I'm loving it, maybe my puts will actually pay off...

So, Lehman is probably going to file for bankruptcy overnight tonight, or so it seems, THIS IS UNHEARD OF but they are opening up today an emergency derivatives trading session RIGHT NOW ON A SUNDAY FROM 2-4PM so that dealers can prepare for a potential Lehman bankruptcy. If Lehman goes under the deals they make today stand, if not, they cease to exist... WTF is going on?!?! The market is ****ING BROKEN!

Derivative traders open session to reduce Lehman risk
Sun Sep 14, 2008 3:05pm EDT

NEW YORK (Reuters) - An emergency trading session has been opened between Wall Street dealers with Lehman Brothers counterparty risk, the International Swaps and Derivatives Association said Sunday.

The session will run from 2 p.m. to 4 p.m. and will involve credit, equity, rates, foreign exchange and commodity derivatives, the ISDA said in a statement.

The aim is to reduce risk associated with a potential bankruptcy filing by Lehman Brothers Holdings Inc.

"Trades are contingent on a bankruptcy filing at or before 11.59 p.m. New York time Sunday," said the statement. "If there is no filing, the trades cease to exist."
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Basically what happened was that going into the weekend traders felt that Lehman would get bought or bailed out...meetings over the weekend seem to have proven otherwise and shit has hit the fan... The fact that they are having this session is like the canary in the coal mine, things are ****ed up


Wall Street Prepares for Potential Lehman Bankruptcy (Update1)

By Craig Torres

Sept. 14 (Bloomberg) -- Wall Street prepared for a potential Lehman Brothers Holdings Inc. bankruptcy after Barclays Plc said it pulled out of talks to buy the firm and the government indicated it wouldn't provide funds in a resolution.

Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight New York time.

``The purpose of this session is to reduce risk associated with a potential Lehman Brothers Inc. bankruptcy filing,'' the International Swaps and Derivatives Association said in a statement today. The ISDA includes 218 banks, brokerages, insurance companies and other financial institutions from the U.S. and abroad.

The step indicates that Wall Street lacks confidence that three days of talks to find a buyer for Lehman, held at the Federal Reserve Bank of New York, will be successful. Treasury Secretary Henry Paulson, who has led the talks with New York Fed President Timothy Geithner, was adamant two days ago against using taxpayer funds in a resolution.

The fourth-largest securities firm until the past week, Lehman has thousands of such trades in credit, equity, commodity, interest rates and currency derivatives.

``ISDA confirms a netting trading session will take place between 2 p.m. and 4 p.m. New York time for over-the-counter derivatives,'' the ISDA said. ``Trades are contingent on a bankruptcy filing at or before 11:59 p.m. New York time, Sunday, Sept. 14, 2008. If there is no filing, the trades cease to exist.''

The announcement came after Barclays, the U.K.'s third- biggest bank, said it abandoned talks to buy Lehman, contending it couldn't obtain guarantees to protect against potential losses at the U.S. securities firm.

To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net
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And by the way oil is currently trading BELOW 100$....The TSX is heavily weighted in financials and oil so expect some blood on the street tommorow kids...have a nice rest of the weekend... :bigup:


Oil 99.23 -1.95 -1.93
Gold 764.50 19.00 2.55
Natural Gas 7.46 0.09 1.28
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I got some shit expiring on Friday....I need bloodshed for them to pay, a LOT of bloodshed...But yeah shorting Lehman 6 months ago woulda been a dream

shitstorm-flyer.jpg
 
fannie and freddie
lehman
saudi arabia (opec)

big news this weekend, we're going to be up to our heads in work this week!

this week doesn't look too great either:
cpi and housing numbers
numerous companies are releasing results (gsi, mer, leh off the top of my head)

we'll see...
 
the next big bust in the U.S. is commercial buildings...

We are in for a hell of a finish to 2008, that will drag on well into 2009...

The drop in oil of late is to help the republicans cause in the elections of november...I expect oil to go back up in 2009.
 
Bank of America might buy Merrill Lynch tonight.......gonna be an early morning for some managers if not a straight all nighter lol...I love this shit


DJIA futures are already pointing to an opening down about 2%, Lehman will probably be announcing bankruptcy in the coming hours, I expect another 1% drop once that comes into play.... watching the Bloomberg streeeeeam
 
Yeah, been watching with interest on the Merryl and BoA merger. Could rival Citigroup (although, them taking out huge losses over the credit crisis is not great).

The biggest thing is to not let Merryl go down into bankruptcy. If that happens, then everyone has a real big problem on their hands

Lehman will cause issues, but if the liquidation process is well done, damage will be controlled. I never had any hope of Barclays going after Lehman anyways. It made no sense.

Sad to say though, but all this stuff is really good for my own portfolio and earnings for the next 3 years :).. it didn't even take a hit during this whole crisis, and with all the liquidations coming, and people selling their stocks, I'll be able to buy extremely low and then just wait for the economy to come back up (as it always does in 5-10 year cycles).

Oil itself doesn't really matter. The higher prices at the pumps and for overall consumption/transport/food are here to stay one way or another, thus putting even more pressure on certain people, forcing them to liquidate (see the cycle?), until the market correction is complete
 
5 more hours till i can trade this bitch
going to be an interesting day. Many people warned if no concrete deal has been reached by sunday night expect asian and euro markets to sell in to the ground. LEH going bankrupt is only the tip of the iceberg the major problem is the large amount of instruments they will be dumping on the open market after that will take down other institutions.


So whos next AIG or WM?
 
Xc0m said:
Yeah, been watching with interest on the Merryl and BoA merger. Could rival Citigroup (although, them taking out huge losses over the credit crisis is not great).

The biggest thing is to not let Merryl go down into bankruptcy. If that happens, then everyone has a real big problem on their hands

Lehman will cause issues, but if the liquidation process is well done, damage will be controlled. I never had any hope of Barclays going after Lehman anyways. It made no sense.

Sad to say though, but all this stuff is really good for my own portfolio and earnings for the next 3 years :).. it didn't even take a hit during this whole crisis, and with all the liquidations coming, and people selling their stocks, I'll be able to buy extremely low and then just wait for the economy to come back up (as it always does in 5-10 year cycles).

Oil itself doesn't really matter. The higher prices at the pumps and for overall consumption/transport/food are here to stay one way or another, thus putting even more pressure on certain people, forcing them to liquidate (see the cycle?), until the market correction is complete
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Agreed Merrill's death would be the straw that breaks the camels' back...it would be over.

It would be crazy if we saw a circuit breaker day this week, all I think it would take is one more major bank to eat it
 
honnestly though i just dont have longterm balls with these companies but its kind of ridiculous how everyone can see AIG, WM and ML are next up in line

My favorite part though: C is just hiding away quietly in the corner. You know how happy they must be no one is pointing fingers at them for once and just leaving them alone :p
 
Citigroup is way too big and has so many assets that they won't even be allowed to file for bankruptcy.

The Asian markets are opening soon, Euro ones in a few hours time. LEH is going into bankruptcy.

I can just see Goldman Sachs going in and snatching a lot of it up, laughing all the way to their own bank. They've been extremely smart in the current economic slump.

I wonder though, if LEH doesn't declare bankruptcy until tomorrow, all the deals worked out today are null and void, meaning talks trying to prolong this and not reaching a deal.. is even worse than just letting it go down tonight


ML won't go down. The merger with BoA is more or less going to happen. the Fed is pushing real hard for it. AIG and WM, I'm not sure. For now they're not on my personal radar as being close to failure, but they're not far off either.
 
sspikey said:
5 more hours till i can trade this bitch
going to be an interesting day. Many people warned if no concrete deal has been reached by sunday night expect asian and euro markets to sell in to the ground. LEH going bankrupt is only the tip of the iceberg the major problem is the large amount of instruments they will be dumping on the open market after that will take down other institutions.


So whos next AIG or WM?
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Japanese Market is closed today for some holiday, so are many other asian markets, Europe will lead the way though and give us an idea of where we stand...then Tuesday there will be a bad selloff in Asia probably.
 
rollingsound said:
Japanese Market is closed today for some holiday, so are many other asian markets, Europe will lead the way though and give us an idea of where we stand...then Tuesday there will be a bad selloff in Asia probably.
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The majority of asian markets being closed doesn't mean much. It means that the selloff on Tuesday will be that much more severe, rather than staggered


Edit : I'm staying up until 5-6AM to closely watch the euro markets, by then LEH plans should be finalized (bankruptcy or financial bailout)
 
Xc0m said:
The majority of asian markets being closed doesn't mean much. It means that the selloff on Tuesday will be that much more severe, rather than staggered
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lol read my second sentence, i agree 100 pourcent




On another note, The Canadian banks were about 20% cheaper with their July lows....could we see that again this week?
 
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Meh, all this will do is make my offer on a condo in Florida seem overpriced by next year :\ .. and it was already low to start with.

I'm glad that the credit crises is happening. It's showing all those fake ballers that they can't live off of credit forever (putting it real simple).

Is it just me, or there's not much news coming out of the Fed's HQ in the last 2-3 hours?
 
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