Posted by: Armel | September 17, 2008

On Wall Street, Karma’s a Bitch!

           

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 )

Armel Njeunou

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Responses

  1. Cut us some slack. LOL

  2. But it didn’t exactly happened that way: the story of the LTCM bail out is true! but it’s not that they didn’t contribute 300mil, they offered 100mil < At least Lehman did. Bearn Stearns declined to participate at the end.

  3. They were other firms that also chose to put up less than 300mil anyway.

  4. @Jamie,
    That’s why I precisely said “US” banks. The other banks were French (Soc Gen & Bnp Paribas).

    @ OZ
    Got u (!)

    Btw i think sooner or later, UBA or another Nija bk will do a reverse take over of a smaller european inst. What do u guys think?

  5. What if you don’t believe in Karma? Can we say this was pure case of BAD LUCK ?


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