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lehmann [sic] bank is scary

315 replies

zippitippitoes · 14/09/2008 22:03

..oh dear

OP posts:
DaddyCool · 15/09/2008 11:49

scary shit ladies. My thoughts are with the folks directly affected by this. this is lame but good luck aero.

pointydog · 15/09/2008 11:51

But they are the finance industry. You would think they would the experts on the nature of finance, its peaks and troughs.

And they are not experts at all. They just focus on making money for their shareholders regardless of how silly the risk.

Aero · 15/09/2008 11:51

Dh hasn't called.

F*k - I can't believe this is happening.

Just seen Upwind's link. Need to talk to dh, but scared to call him. I know he will be in tears over this. Nothing I can say will make him feel better, I know it. I feel distraught for him (and us).

We are up a very shitty creek with nothing which looks remotely like a paddle.

I hope if he gets to the end of the week that he will at least get his pay.

WendyWeber · 15/09/2008 11:55

aero for you all and hoping here too that no news from your DH is good news.

Talking about the big cheeses saving themselves, can anybody explain this bloke's apparent current lifestyle to me?

Is he another "millionaire" like the one who killed his family & burned his house down? Or is it maybe all in his wife's name? What exactly does going bankrupt mean these days?

Earlybird · 15/09/2008 11:55

The next companies in BIG trouble are AIG (world's largest insurer) and Washington Mutual (largest savings and loan). Both are teetering.

I think the US government/treasury/Fed have got to do something immediately to reassure and calm the markets.

American markets are due to open in 3 hours, and there will be financial carnage without some announcement/action.

zippitippitoes · 15/09/2008 12:01

i think this news is so alartming the repercussions for every single person will be quite shocking

OP posts:
Earlybird · 15/09/2008 12:01

pointydog - you're right, but individuals bear a great deal of responsibility too. Think of the millions who took on ludicrous mortgages (zero downpayment or mortgages for 125% etc), or took equity out of their property to fund living/lifestyle expenses. That all 'made sense' as long as property kept increasing in value.

Now that the property bubble has burst, people/institutions are defaulting on loans and the entire banking/financial industry is in big trouble.

legalalien · 15/09/2008 12:04

aero - I have a couple of friends over at Lehman -as far as I can gather, there are a series of meetings being held which employees are in and out of - the email system over there is grinding to a halt (due to vast amounts of email traffic), and a friend mentioned that the phone network is also under pressure. apparently her mobile isn't working now either - not sure why that would be as I wouldn't have thought there was anything "Lehman-specific" about the mobile - although on second thoughts it may be blackberry server related? So try not to worry too much about lack of communication.

apparently the press are camped out all around the building - only increasing the nightmare for all concerned.

will keep you posted if I hear anything. else...... the mood here at CW is very sombre.

Soapbox · 15/09/2008 12:05

I think today will be a day of utter carnage once the US markets open.

What a fu**ing nightmare!

Aero, I hope very much that today brings better than expected news for your DH, despite the way it looks like it is heading

Upwind · 15/09/2008 12:06

I am sorry Aero.

Pointydog "They just focus on making money for their shareholders regardless of how silly the risk."

Unfortunately they don't even do that. The leading bankers awarded themselves unbelievable salaries and bonuses - the Lehmans CEO got 75 million last year in bonus alone. They took risks because, if they paid off, they got a massive reward. If they didn't, only the shareholders lost out. Of course the risks just kept getting bigger, but if you have been earning hundreds of millions over the past ten years, what does it matter?

WendyWeber · 15/09/2008 12:06

soapbox, please can you explain the Silverjet bloke's current financial situation to me? (my post with link at 1155)

MrsBick · 15/09/2008 12:07

sorry to sound really stupid but when adn how will this affect people who arn't in the banking industry?

i know with the credit crunch prices have gone up, cost of living is increasing every week.

will it be like the big depression-no jobs for everyone? what about people who haven't got savings or are in debt?

hope you get good news Aero, thinking of you

OhYouBadBadKitten · 15/09/2008 12:07

aero - am thinking of you and your dh, and all those others who are very worried at the moment.

Soapbox · 15/09/2008 12:09

WW - the usual trick would be for all his assets to be in his wife/children's names!

jimjamshaslefttheyurt · 15/09/2008 12:10

mrsBick - Q&A here on 'how will it affect me'.

Scary stuff. Hope you get something sorted soon Aero.

WendyWeber · 15/09/2008 12:11

Thank you, soapy.

What a total bastard in that case

cestlavie · 15/09/2008 12:17

Aero: sorry to hear that - that's pretty tough. As someone else mentioned, both the short and long term future probably depends on which part of Lehman's he reports into. If it's the asset management side then he stands a better chance of moving somewhere with that part of the business or certainly being kept on. Good luck with it.

Soapbox · 15/09/2008 12:17

MrsBick - a recession does typically mean loss of jobs throughout all industrial sectors. It means rising prices, rising interest rates adn financial woe for all!

As a basic example:

I run a manufacturing company which makes widgets for a car maker. The car maker is slow to sell new cars as people aren't spending any money, so isn't buying as much from me. I still have my workforce/factory/raw materials to pay for, so I need to get a loan from a bank to tide me over.

I go to a bank but because they have tight lending criteria now (as no one will take on risks any more) they won't lend me any money. I try Venture Capital and Private Equity finance, but no one wants to take a risk.

The company folds leaving 1000 people without jobs. 1000 people who are no longer spending money in the shops (retail job losses ensue), 1000 people no longer able to pay their mortgages (so the banks/building societies have another load of debts not paid, so don't lend to the next company that comes along needing support), 1000 people on the job market chasing a job to keep a roof over their heads.

The job market gets flooded with people and so people accept jobs at rates of pay well below last year or indeed the year before. This means there is less money available to live on and pay for basics so out goes the car, the heating is turned off, less food is bought, this impacts on jobs in all those industries too. The cycle just goes on and on and on!

Turniphead1 · 15/09/2008 12:17

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

Aero · 15/09/2008 12:17

He called. It's over - he's coming home.
Emails have stopped.

Going in tomorrow to find out if they'll get paid.

Mrs Bick - the reason it will affect everyone is because these things spiral. Everyone is tightening their belts, therefore businesses lose money affecting their families etc.

Fewer people can now afford, for example, an extension, so builders lose out and are going under and in turn their employees are out of work.

My parents own a small shop - people have much less spending money now, therefore their profits are ever decreasing atm and for this reason many people have to close, therefore the effect is widespread as their staff lose their jobs etc. It's a domino effect and eventually most people will be affected in some way by this.

Soapbox · 15/09/2008 12:18

Oh Aero - I am so sorry

What is it that he does exactly? Can we collectively put out the feelers on his behalf?

ClairePO · 15/09/2008 12:19

I'm very sorry it is not good news Aero hope you are OK.

Turniphead1 · 15/09/2008 12:19

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

WendyWeber · 15/09/2008 12:19

Oh, aero - fingers crossed then for getting paid this month to tide you over - do you accept hugs?

X

jimjamshaslefttheyurt · 15/09/2008 12:19

Blimey Aero.

Really hope he gets paid.