lehmann [sic] bank is scary

[zippitippitoes]

..oh dear

I've been talking to DH again. About 20% of his clients are at either Lehman or Merrills. Apparently Alan Greenspan has been saying this could be worse than 1929. The long term implication when investment banks aren't lending to large multinationals will have the knock-on effect right down through the supply chains to the small guys down the road who make widgets for the big guys.

And I agree about salaries. The majority are on relatively 'good' incomes, but nowhere near the stratospheric 6-7 figures that the big guns receive. But sadly you're right, there won't be much sympathy.

As for the names - banks that have folded:
Northern Rock, Dresdner Kleinwort, Bear Stearns, Lehmans & Merrills.
Banks rumoured to have major problems are RBS, which owns Natwest & ABN etc, then AIG, Bradford & Bingley is in serious trouble an UBS.

PWC have been appointed as administrators at Lehmans and are already there. So Lehmans, as I understand it, can now do nothing, not even close down positions, so yes, effectively Lehmans no longer exists, and I'm afraid, Aero, that that is really bad news. I'm so sorry.

Dh is definitely not on a banker's salary, nor has he had any huge bonuses. We are in no way extravagant, hence, have no savings that would dig us out of a hole this size.

He's just hoping to get paid this week to buy us some time to look elsewhere for work.

Zebs and sweetgrapes have summed up what's happened pretty well, but no way did dh see this coming when he took on the job (obviously).

Thanks everyone for your kind words and wishes.

Dh has been made redundant before, but that was long before we had a family and owned a home and both of us were working! We got through it then, but this is feeling much more threatening.

I feel very scared and sick right now.

Message withdrawn

Blimey.
Lehman in Chapter 11 and Merrill sold.

That's very true Danae. And a 'correction' has been on the cards for over a year, so it's not as if we didn't see it coming.

Oh A!

The BBC website says that "It (Lehman bros)said that its broker-dealer division and asset management division Neuberger Berman Holdings would not be included in the filing"

Is DH in the asset management division? Ironing that PWC is coming in to sort out the mess.

Has he called?

Aero just wanted to say really sorry you're having to face this, I hope that your DH gets paid this month and you get breathing space for him to find something else.

I work in Canary Wharf and have always detested the bankers with their appalling manners and look at me ways but I'm very sad for everyone working at Lehmans or Merrils and not knowing what the future holds. I work in finance and it's very frightening what is happening now.

Aero - Lehman subsidiaries were not included in the chapter 11 filling, which should in itself buy employees more time. Unless you have heard from him by now, it is not certain that your DH will be made redundant. Chunks of Lehman will still be sold off. Fingers crossed for you.

Oh Aero, I am so sorry for you at the moment. DH used to work for Merrills but luckily doesn't now as he would definitely have been made redundant by now. He is still in the City but we thank our lucky stars every day that he moved slightly out of investment banking and although still in the City, is in a safer position now -in so far as anything is safe these days. But all these financial instituations and banks are tied up together and the collapse of one has effects on all of them. He has gone off to work this morning and I am sitting at home mentally calculating how much money we could lay our hands on and what we could sell if it came to it. Have you spoken to your dh?

And thank you for the simple explanations (not got head for figures/business etc)

He hasn't called yet. I'm hoping that's a good thing.

Ironic indeed re pwc Cadbury.

fking hell this is all scary stuff
sorry aero.

A. Are you sitting watching the news, getting yourself tied in knots? How about trying to busy your self with something away from this. I know it won't go away but you will make your self ill with worry. I'm here if you want some company.
xxxxx

Aero - really hoping that you get good news from DH.

I am in the finance industry and found at last week that I am facing redundancy for the second time in 11 months . Both redundancies directly due to the credit crunch. Think I need to rethink my choice of career!

Thankfully Cadders, ds2 is still here in the mornings and has hijacked the tv for a Tom and Jerry session, so I'm not watching.

Have been busy in the kitchen in between postings. Think am going to see if have enough ingredients to bake cookies.

So sorry Looby and Aero.

Lubyloo - I feel your pain. it's horrid isn't it. Don't think Ive ever been this scared re finances.

Yes, in hindsight, we should have saved, but once the bills are paid, there is precious little left. We honestly are not extravagant. We have very little disposable income these days (like many people). We stay out of overdraft and just about manage month to month.

cookies- good move.
as you know, I swear by them in times of extreme stress.

more bad news

www.thisislondon.co.uk/standard/article-23555604-details/5%2C000+City+jobs+axed+as+US+banks+crash/ar ticle.do

It's easy to say serve you right, should have saved and all that but the majority are on fairly average salaries and a high percentage (inc me) are on contract so don't get a bonus or even any notice - our one month rolling contracts were switched to weekly ones a few months ago.

The decision makers have a lot less to lose, literally - Merrill Lynch's CEO is on $80m a year ($160m with bonus, I think) and got a $28m signing on bonus. This is in addition to the $300m of shares he amassed in his last job - ok, the shares may go down but they're got to go down one hell of a long way before he's seriously in trouble. You do wonder where they find that sort of salary.

Common sense says the industry 'should have seen this coming', but haven't most people/companies been acting/spending as if the property bubble would never burst? Sadly, that appears to now have happened, and the high risk loans may now destroy many of them.

Evidently Lehman - until as recently as June of this year - had never posted a quarterly loss. The whole thing is hard to take in.