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Lehman Brothers 1850-2008?


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How the big ones fall hard. Lehman one of the pinnacles of investment banking and dream for many young banker grads may probably cease existence after tonite. This may very well be a wake up call for the big riches to get some sense and stop playing with money of others. I feel sorry for the "foot soldier" employees who will lose their income. Never blame the soldier who fights on the battlefield because he is just taking orders from the chieftains.

My dad who is back in India and has no knowledge of what is happening day to day in US gave a good historical evidence. He said that in 19th century before a presidential election (he does not recollect who was elected) there was a similar crash in September/ October and that the market picked up after the election. Granted the rules of the game and other things have changed and today's intensity is probably many a fold than 100 years ago. Is there a striking coincidence?

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How the big ones fall hard. Lehman one of the pinnacles of investment banking and dream for many young banker grads may probably cease existence after tonite. This may very well be a wake up call for the big riches to get some sense and stop playing with money of others. I feel sorry for the "foot soldier" employees who will lose their income. Never blame the soldier who fights on the battlefield because he is just taking orders from the chieftains.

My dad who is back in India and has no knowledge of what is happening day to day in US gave a good historical evidence. He said that in 19th century before a presidential election (he does not recollect who was elected) there was a similar crash in September/ October and that the market picked up after the election. Granted the rules of the game and other things have changed and today's intensity is probably many a fold than 100 years ago. Is there a striking coincidence?

Could he be talking about the Fisk Banking Scandal... that was a market crash in Sept 1869 where a sleazeball tried to corner the gold market.

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I hate it when my worst case scenario happens.

Sux being right when you're a pessimist:(

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Washington Mutual

Wachovia

Citigroup

Bank of America

The FDIC doesn't have the funds to insure the deposits in one of these banks much less all four. WaMu is especially close to the edge.

It's extremely unlikely that Citigroup or Bank of America would fail. WaMu is going to fail or will need to merge with someone. As for Wachovia, does North Carolina really need two banks??

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I hate it when my worst case scenario happens.

Sux being right when you're a pessimist:(

Well, as I always say, I'm not negative, I'm realistic. It's not a case of the glass being half full or half empty, there is no glass!

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Washington Mutual

Wachovia

Citigroup

Bank of America

The FDIC doesn't have the funds to insure the deposits in one of these banks much less all four. WaMu is especially close to the edge.

Hmm...I have a saving account with BofA, credit cards w/ Citibank and BofA, and an IRA w/ Wachovia.. and IRAs with Vanguard, Schwab, Fidelity, etc..

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Washington Mutual

Wachovia

Citigroup

Bank of America

The FDIC doesn't have the funds to insure the deposits in one of these banks much less all four. WaMu is especially close to the edge.

What exactly happens if the FDIC can't insure the $$$ in the bank? Can this really happen? Should I close my savings account and horde my $$$ under the bed?

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Hmm...I have a saving account with BofA, credit cards w/ Citibank and BofA, and an IRA w/ Wachovia.. and IRAs with Vanguard, Schwab, Fidelity, etc..

I would suggest you use this tool to determine if you want to move your funds and where to move them to.

I would be especially watchful of WaMu and Wachovia right now.

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It's extremely unlikely that Citigroup or Bank of America would fail. WaMu is going to fail or will need to merge with someone. As for Wachovia, does North Carolina really need two banks??

IIRC, didn't Citigroup already experience some turmoil?

I had the opportunity to work for them about a year ago. I opted out, and I'm kind of glad I did now.

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Nah...

How I look at it: Pessimism is the new REALISM[

Yes...all is sh*t... Everything is f*cked. Some days I feel that way. But this week is better than the last 6...started a new gig Monday, new surroundings--job is downtown instead of in generica (suburbia). Work is off to a slow start, but the $$$ are great. And the highs this week have been under 100 (fall is coming).

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I get the feeling that this financial mess is going to be much worse and last much longer than expected.

I can operate in that sort of reality, but I need to unload all of my obligations if I'm going to make it through.

I have a tough slog ahead of me, I think.

...and Wachovia is my bank. :rolleyes:

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After all that expansion too. Brand new locations plus all the banks they bought out (Home Savings, American Savings, Great Western)

As far as AIG, letting an insurance company fail isn't as good of an idea.

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Thing is, with WaMu, it works out to my advantage. In Indianapolis, none of the big California banks have any presence. Bank America? Nope. Wells Fargo? Not really--they might have just opened a single branch or something, but no ATMs or anything.

JPMorgan will add branches in California, Washington and Florida, among other states, and will have 5,400 offices with about $900 billion in deposits, the most of any U.S. bank. The branches and credit cards will carry the Chase brand and will be integrated by 2010, JPMorgan said.

:booyah:

Edited by Croc
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I figured BofA would have by now, since all those mergers (Fleet, NationsBank, etc.)

Due to the NB merge, they kinda technically aren't California's bank anymore (NB was based out of Charlotte)

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