IN LIFE AS IN WALL STREET, WHAT GOES AROUND COMES AROUND..

LEHMAN BROs and BEAR STEARNS are not the only victims of the current meltdown of financial firms, but they are the ones that got hit the hardest. They lost everything when others got rescued at the last minute, and looked for another day under the Sun. So where those two “cursed” ? Let’s go back a little bit

For the little story, Long-Term Capital Management (LTCM) is the hedge fund that in 1998 collapsed and lost $4 billion. That triggered a global financial crisis and a Wall Street-led bailout and congressional hearings on the dangers of hedge funds, the freewheeling pools for wealthy investors and institutions that often trade heavily and rely on borrowed money to bolster returns.

Check this out : When LTCM was about to crumble, Wall Street firms got together to contribute to a rescue fund. They were all supposed to each put up $300 millions. BUT ONLY TWO U.S FIRMS REFUSED TO HELP PUT UP THE AGREED $300 Mil TO KEEP LTCM from COLLAPSE: BEAR STERNS and LEHMAN BROTHERS !! The same two firms that got wiped out 10 years later (Something to think about )

WALL STREET and the rest of the US financials in a STATE of EMERGENCY !!!

LEHMAN FILES FOR BANKRUPTCY

MERILL LYNCH SOLD for $29 a Share to BANK of AMERICA

AIG IN DEEP TROUBLE, ASK FOR GOV’T to HELP

LEHMAN BROTHERS BANK la banque d’investissement qui subit la fureur des short traders sur wall street depuis le debut de l’été, serait en voie d’etre acquise par la Korean Development Bank. Il faut se souvenir que cette banque est en competition pour devenir la véritable plaque tournante de la finance en Asie en concurrence avec la China Construction Bank.

Apres multiples changements à la tete de la division Finance, Lehman Bros sera donc la enième victime de la crise du Sub-Prime.

Source: BloombergTV.

UPDATE:

-Korean Development Bank Claque la porte des negociations.

-LEHMAN BROTHERS a desormais le dos au mur !!

THE DOLLAR IS WEAK, US INVESTMENT BANKS ARE EXPOSED, OIL PRICES ARE CATCHING UP, IT’S TOUGH TO BE AN WHOLLY OWNED AMERICAN COMPANY LATELY

Nobody saw this coming, not even the best hedge funds could have anticipated this, but it is really happening: European, Chinese, African, Middle Eastern, South American companies are all embarked on a buying spree of American assets. Whether it’s by providing straight cash to fill liquidity gaps, or using trade balances to purchase US bonds, the take over is in full effect !

Earlier this week when InBev a Brazilian brewer ( Brussels Headquartered) made a bid to purchase the largest beer brewer Anheuser-Busch (budweiser).But budweiser is an American Icon and that offer made a lot of noise in Washington DC. InBev is now an “enemy” of conservatives American think-tank lobbyists who threaten to petition and have the government block the deal. The Governor of the Hometown State of Anheuser Busch is looking to use executive powers to keep Budweiser American owned.

A couple of weeks ago, I posted about the MTNdeal with the Airtel Indian group. After looking at the balance sheets of the African Company, M&A specialists backed an opposite offer from MTN to Bharti (indian Cellular operator). Now MTNis the buyer and if one follows closely the situation, it won’t be a surprise if MTN next turn their eyes on American telecom companies. SPRINT for example has lost so much value that its fair to say shareholders would be interested in an offer if the price is right.

The Dubai port Deal was shut down not because it didn’t make sense financially but because it had too much political fallout. Even the President intervene to calm his own party, they still said Hell to the No !! But Oil producing gulf states are sitting on too much money and I knew it wouldn’t be long before they purchased another American Staples. Sure enough, The Abu Dhabi Fund bought a stake in the Chrysler Building. We now learned that Italians purchased another Manhattan landmark: The Flat Iron Building. Valter Mainetti is the new owner of a majority stake. As if that wasn’t enough, Lehman Brothers disclosed that were about to receive a new capital injection from the Gulf States ! Let’s not forget the previous cash injections from Abu Dhabi into Citi bank.

The money and the debt leverage is just not there in the US anymore to fund Large acquisitions and control merger talks across the globe.

S/ce: FT, NYT,YAHOO, TIMES, WSJ