Some quick links while we wait for Lehman's bankruptcy filing.
$$$ Bank of America is buying Merrill, the WSJ reports. The deal values the company at $44 billion, or $29 per share, a significant premium from Friday's market price. Everyone is perplexed by the premium. But if it is, as some have reported, an all stock deal and BofA shares take a significant hit in the wake of the news, the final price and the premium could be much lower.
Update: CNBC's Charlie Gasparino says the government pressured Merrill to sell itself. Maria Bartiromo says they weren't pressured.
$$$ On CNBC they are saying that AIG has asked the Federal Reserve for some kind of emergency bridge loans. Can the Fed lend to an insurance company?
$$$ Federal Reserve is dramatically expanding its emergency lending program. It's now going to take all sorts of collateral, including equity.
$$$ A short list of Lehman's biggest holdings from the Fly.
$$$ John Gapper describes Richard Fuld as a tragic character, fierce, proud, flawed. And in the end, his flaws cost so many so much.
$$$ CNBC's Lehman special will run until 10 PM tonight.
$$$ Justin Lahart urges the US to own up to its banking crisis. "Quickly shrinking the financial sector could have a social cost, as well, putting tens of thousands of people out of work. Where will they go?" he asks.
$$$ Thoughts of David Einhorn and the shorts still haunt the thoughts of Wall Street executives, Louise Story at the NYT says.
$$$ "Take a very deep breath. It looks almost certain that this week will be the one where we see the financial implosion in U.S. banking and brokerage that many have been expecting for some time," Paul Kedrosky says.
$$$ With Merrill Lynch, Lehman Brothers and Bear Stearns gone, everyone is asking whether Morgan Stanley and Goldman Sachs will survive as independent investment banks.
$$$ Thanks to everyone for following along all weekend. Your tips and comments were invaluable. Our condolences to all our friends and readers at Lehman.
Posted by pjm372 , Sep 14, 2008 9:06PM
any explanation on this outrageous premium would be appreciated
Posted by daytraitor , Sep 14, 2008 9:06PM
Next time I'm short of cash I'm going to stroll over to the Fed and see what my wristwatch fetches at the discount window.
Posted by Seaman Bodine , Sep 14, 2008 9:09PM
seriously, someone at the fed has figured out how to divide by zero, and they showed the formula to BAC
Posted by guest , Sep 14, 2008 9:10PM
am lehman employee - bad day
u reckon any compensation to people like me (at least a month)? dont know much about bankruptcy law
Posted by guest , Sep 14, 2008 9:11PM
no
Posted by guest , Sep 14, 2008 9:13PM
maybe they just plugged the fed funds rate in their DCF model!
Can you post your own stock as collateral?
Posted by guest , Sep 14, 2008 9:13PM
SKF
Posted by guest , Sep 14, 2008 9:13PM
www.BankofAmericaMerrillLynch.com
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=270276192100
Posted by guest , Sep 14, 2008 9:13PM
nice
Posted by guest , Sep 14, 2008 9:13PM
the gorilla is aping jimmy cayne.
Posted by guest , Sep 14, 2008 9:14PM
Bravo Carney. Bravo.
Posted by guest , Sep 14, 2008 9:14PM
@4: Unfortunately, probably not. If they lay you off after they file for bankruptcy, LEH won't be able to give you severance under the bankruptcy code unless with court approval, which they probably won't get.
I'm sorry . . .
Posted by guest , Sep 14, 2008 9:15PM
I'm watching Lehman employees clear out their desks as we speak from the building next door.
My suggestions as someone that's been in your shoes:
1) file for unemployment as soon as you can
2) take as much relevant material from your desk to be able to refer to it and not forget the details from the deals you worked on
3) remember that things always get better...they have to.
Posted by AJ , Sep 14, 2008 9:18PM
Un-fucking-believable
Is anyone watching this interview on CNBC with the Lehman employee who was leaving after cleaning out his desk?
Posted by guest , Sep 14, 2008 9:19PM
Jesus AIG is asking the fed for a bridge loan until they can unload assets. We are in unprecedented waters.
LEH employee on CNBC was a very honorable man.
Posted by guest , Sep 14, 2008 9:21PM
what a ridic interview... only on cnbc.
Posted by guest , Sep 14, 2008 9:22PM
MER is a behemoth in AUM.It spews cash so FICC can blow it on structured finance products,or whatever was the flavor of the month in IB.MER is really a global brand and that carries a lot of goodwill,so this price isn't a suprise.
Posted by guest , Sep 14, 2008 9:23PM
have a hard time feeling sorry for all the assholes I collide with every fucking morning on wall street having to find jobs.
yeah, a hard time indeed.
a long time in coming, if you ask me.
Posted by guest , Sep 14, 2008 9:23PM
So what gives? AIG turns to Fed for help, Fed pushes MER/BAC...what are they, fucking matchmakers? But let LEH fail? Why? Anyone?
Posted by guest , Sep 14, 2008 9:25PM
19.
because the bidders were coy with LEH, the fed saw nothing was happening, and the building is burning down. they turned to merrill and said, "Get your shit together now."
Posted by guest , Sep 14, 2008 9:26PM
Caaaaaaaaaaayyyyyynnneeeeeee!
Posted by guest , Sep 14, 2008 9:26PM
Defication has hit the ventilation
Posted by guest , Sep 14, 2008 9:27PM
if they'd cut the premium on MER could BofA had bought LEH too?
Posted by guest , Sep 14, 2008 9:27PM
Re: AIG.
What,s going on? Do they have a shitload of debt coming due?
Posted by guest , Sep 14, 2008 9:27PM
#18 - you're absolutely right. Live by the dollar, die by the dollar. Many folks will wake up tomorrow morning and truly look at themselves in the mirror for the first time in months or years.
Posted by guest , Sep 14, 2008 9:28PM
@ 25 I bet they don't.
Posted by cheesedog , Sep 14, 2008 9:29PM
That LEH guy on CNBC was remarkably poised, and far too generous to Berspankme and Paulson. Class act amongst a swarm of dirtbags hovering outside the building looking to get something out of others misfortune.
To all you guys that are enjoying this, take a long look at how miserable your existence is. And then go buy some insurance. Cause karma is coming for that ass. These are guys with kids and tuition. Show some f'ing respect.
Posted by guest , Sep 14, 2008 9:29PM
Goldman sachs + Wachovia next.
Posted by guest , Sep 14, 2008 9:29PM
Gotta commend Carney/DB on its great coverage of this mess all weekend!
Posted by guest , Sep 14, 2008 9:30PM
not enjoying it here. didn't enjoy the last ten years of rank foolishness, either.
this is reality catching up with Wall Street.
- 18.
Posted by guest , Sep 14, 2008 9:31PM
MS + JPM
Posted by guest , Sep 14, 2008 9:32PM
@28
amen
Posted by guest , Sep 14, 2008 9:32PM
what the hell does this mean for merrill employees
Posted by guest , Sep 14, 2008 9:32PM
JP Morgan Stanley
Posted by guest , Sep 14, 2008 9:33PM
The thing about Thain:
He managed to bring NYSE out of its gutter with the inevitable merger.
It appears he's done it again.
They guy appears to be a trench-warfarem problem solver.
Posted by guest , Sep 14, 2008 9:34PM
what the hell does this mean for merrill employees
Posted by guest , Sep 14, 2008 9:35PM
thain is really turning things around - they don't have to sell if it's not for lehman's fall
Posted by guest , Sep 14, 2008 9:36PM
I am a LEH employee hurt by all this.
But after cursing the feds for months, I think you HAVE to give credit to them for not bailing anyone out. Irrespective of how much it hurts me, this is how market discipline needs to be enforced.
We are all to used to ridiculing some folks when they involve taxpayer funds (BSC) or when the dollar is falling. Lets give them some credit where credit is due.
Posted by guest , Sep 14, 2008 9:37PM
@ 36 that more of them have a fucking job than they would have otherwise?
Posted by guest , Sep 14, 2008 9:38PM
Anyone care to wager there will be one stunning detail that will tie together what occured today?
[BofA got something from the Fed]
-C
Posted by guest , Sep 14, 2008 9:40PM
#27
Relax, everyone has kids with tuition. What makes this situation different than when the Ford or GM guys have to take a buyout and get screwed? Nothing, except GM / Ford guys they don't have a media sector devoted to them. When the auto industry or textile industry people lose jobs, all us finance people call it "free trade". This is the "free trade" of capitalism, too, except it hits closer to home.
Posted by guest , Sep 14, 2008 9:40PM
Drunk teens making noise in front of the Lehman building in London.... I went out for a stroll to check if PwC are there yet.
Posted by guest , Sep 14, 2008 9:40PM
what ML ibankers are more in danger of being laid off? vets or newbs
Posted by guest , Sep 14, 2008 9:40PM
anyone want to venture a guess how many yrs it'll be before the Street starts calling for a breakup of BAC like C? cause we know how great the financial supermarket model has worked for C's business and stock since 98
Posted by guest , Sep 14, 2008 9:41PM
what ML ibankers are more in danger of being laid off? vets or newbs
Posted by guest , Sep 14, 2008 9:41PM
@27 straight up! that poor guy, 23 years there. He's devastated. How was HE at fault here?
Posted by guest , Sep 14, 2008 9:41PM
@ 40 suspect there must be something lurking in the details along those lines.
The Fed was coming across as increasingly desperate in the headlines.
Posted by guest , Sep 14, 2008 9:41PM
futures not so bad right now. how easy is it for govt to prop up futures markets?
Posted by guest , Sep 14, 2008 9:42PM
@41 You can still feel for people. It sucks for the rank & file, no matter what industry it is.
Posted by John Carney , Sep 14, 2008 9:42PM
@29 and everyone else who has left appreciative remarks about our weekend coverage: Thank you so much, and thanks for reading. Our condolences to all our friends and readers at Lehman.
Posted by guest , Sep 14, 2008 9:43PM
@ 48... oy. sometimes markets do what they do without government intervention.
Posted by guest , Sep 14, 2008 9:43PM
JC -
Once again, excellent journalism!
Posted by guest , Sep 14, 2008 9:44PM
@ 49 agreed, the rank and file. the bsd's are on their fucking own.
Posted by guest , Sep 14, 2008 9:45PM
@ 46 he has an obnoxious accent.
Posted by guest , Sep 14, 2008 9:45PM
@ 46 he has an obnoxious accent.
Posted by cheesedog , Sep 14, 2008 9:46PM
#41.....When auto workers get hosed, it is also sad. Anybody who rejoices when that happens is a POS also. So settle down, Michael Moore.
Posted by guest , Sep 14, 2008 9:47PM
@46 -- this guy's an idiot motormouth.
he should go back to grape-farming.
Posted by guest , Sep 14, 2008 9:47PM
What does this mean for BoA investment guys? I know they have a relatively very small unit and a very good friend of mine just took a job in their investment group. He told me this weekend if they bought Lehman, he thought he would get canned as all investment would move to NYC and out of Charlotte. I am clueless about this but worried about a friend.
Posted by I am a Dude , Sep 14, 2008 9:47PM
good job carney. where is Bess?
Posted by guest , Sep 14, 2008 9:47PM
Carney - Bravo! DB was the sheer leader in coverage - hands down.
Go slug back some Jack LEH r&fs...sorry.
Posted by guest , Sep 14, 2008 9:48PM
@ 56...
begs the question: what do bank runs and bear raids have in common with hijacked planes and skyscrapers, if anything?
Posted by guest , Sep 14, 2008 9:50PM
O'Neil Re Enron: "The System Works"January 16th, 2002
WASHINGTON, DC -- Saying, "Companies come and go. It's part of the genius of capitalism," Treasury Secretary Paul O'Neil said on Sunday. The company dramatically collapsed in the biggest bankruptcy filing in US history.
He continued, "People get to make good decisions or bad decisions, and they get to pay the consequences or to enjoy the fruits of their decisions."
Posted by guest , Sep 14, 2008 9:50PM
WTF? Carney corrected the typo?
This article was originally titled "Bank of America buys Bank of America"
Posted by guest , Sep 14, 2008 9:50PM
MER SHORTS GET SPANKED
pictures at 11.
Posted by guest , Sep 14, 2008 9:51PM
WTF? Carney corrected the typo?
This article was originally titled "Bank of America buys Bank of America"
Posted by guest , Sep 14, 2008 9:53PM
Spooz bottomed tonight.
Posted by guest , Sep 14, 2008 9:53PM
good job carney
Posted by guest , Sep 14, 2008 9:54PM
this has to be the most historic sunday in wall street history.
Posted by Investorcluzo , Sep 14, 2008 9:54PM
why would gs and wb hook up? gs is a first tier name and wb is a second rate regional. talk about dilution of the silver plated reputation. try again. where are all the big "dumb" foreign banks? oil trading below $100 (and that's supposed to be cheap)...
echo prior posters: good job carney, let's have drinks courtesy of your capital providers/sponsors this week. tell us where and when...
Posted by guest , Sep 14, 2008 9:54PM
Summer associate offers at Lehman? These guys gotta think that MBA was a complete waste at this point.
Posted by guest , Sep 14, 2008 9:54PM
what a weekend..
Posted by guest , Sep 14, 2008 9:54PM
Whoever said this is not a bailout, it still is a bailout. Fed relaxed its collateral requirements allowing toxic assets- that amounts to a subsidy
$$$
Posted by guest , Sep 14, 2008 9:56PM
maybe it's just schadenfredue on my part, but I kind of like seeing all those ex-Lehman people on the street with boxes.
Posted by guest , Sep 14, 2008 9:57PM
If anyone would like to hire an analyst that has unfortunately chosen Lehman Brothers as her first job out of college...please contact me?
Posted by guest , Sep 14, 2008 9:58PM
they're lucky though, subway right under the building, so that makes moving out a lot easier
Posted by Investorcluzo , Sep 14, 2008 9:58PM
love the fact that this is scheduled to go off at 10pm. coincidence that it's the same time entourage starts? okay kiddies, enough financial drama for this guy, time for johny drama. good luck tomorrow to all.
Posted by guest , Sep 14, 2008 10:03PM
just hit me now, Dick Fuld is a rather uncommonly ugly dude.
Posted by guest , Sep 14, 2008 10:03PM
Don't forget, many of these LEH folks were back office work-a-day Joes, but also many were I-Bankers who regularly advised on mergers that laid off 10s of thousands in the name of "synergy" one only hopes they realize that what goes around, comes around...for the rest, I hope you get a job soon...Thank a Democrat that there still exists Unemployment Compensation.
Posted by guest , Sep 14, 2008 10:04PM
Cluzo: wachovia is hardly a second rate regional....its the fourth largest in the country by assets and the second largest retail brokerage by a slim margin. why? so gs can get at wb's deposits. rethink it a bit
Posted by guest , Sep 14, 2008 10:05PM
@74 -- send picture
Posted by guest , Sep 14, 2008 10:05PM
gee I wonder if the computers in London will work tomorrow morning.
Posted by guest , Sep 14, 2008 10:06PM
Carney, thanks for all the reporting over the weekend. This has been invaluable over this insane period.
Posted by guest , Sep 14, 2008 10:06PM
@ 78 -- dumbest post of thread.
Posted by guest , Sep 14, 2008 10:06PM
www.BankofAmericaMerrillLynch.com
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=270276192100
Posted by guest , Sep 14, 2008 10:08PM
carney, time for another thread (bank consortium according to Bberg)
Posted by guest , Sep 14, 2008 10:08PM
@ 84...zero bids.
Posted by guest , Sep 14, 2008 10:09PM
awesome -- i just realized that cnbc programming info says that the current show is "deal or no deal". perfect.
Posted by guest , Sep 14, 2008 10:10PM
Carney - nice job.,
Fed just expanded the lending window to dealers. It's now 200bil and they will take equity along with investment grade debt. Unrestored Pintos are next.
Posted by guest , Sep 14, 2008 10:10PM
@74: what's your MySpace page?
Posted by guest , Sep 14, 2008 10:10PM
Did they just say on CNBC they're easing the chinese wall?
Posted by guest , Sep 14, 2008 10:11PM
@83 I second that
Posted by guest , Sep 14, 2008 10:12PM
Few dozen hedge funds gonna die tomorrow on MER shorts.
Posted by guest , Sep 14, 2008 10:13PM
Don't worry Andrew your secret is safe with me. You have nothing to worry about I'm a professional...... stalker.
SILENCE OF THE LAMBS!
SPODE
Posted by guest , Sep 14, 2008 10:13PM
rats leaving the building but what happens to all the money the chinese poured into mer? ouch
Posted by guest , Sep 14, 2008 10:16PM
Fed cannot lend to an insurance company
Insurance companies are regulated at the State level...there is zero Federal oversight of insurers (outside of IRS or SEC)....sorta sleazy but true
NY State Insurance Commissioner regulates AIG, they have a state guranty fund that would gurantee Insurance Policies for grannies and orphans....not CDOs for Gordon Gekkos.
The Fed might bless some nonsense netting session, zero $$$$$$$$$$$
Posted by guest , Sep 14, 2008 10:16PM
Carney, this was your finest moment, and I've been here since the beginning.
also, the comments were outstanding.
thanks.
-retail
Posted by guest , Sep 14, 2008 10:19PM
thanks for the coverage it was great! Sorry to anyone that works(ed) at leh
Posted by guest , Sep 14, 2008 10:19PM
@92
More layoffs.
Posted by guest , Sep 14, 2008 10:20PM
I hope the actually sign the deal.
Posted by tduncaneu , Sep 14, 2008 10:20PM
Wasn't it less than a year ago that the Merrill board fired Stan Oneal for trying to sell Mer to Wachovia for $80 a share?
Some might say ironic
Posted by guest , Sep 14, 2008 10:23PM
@ 92, 98: that's a heartbreaker.
anyway I posted that hours ago.
Posted by guest , Sep 14, 2008 10:23PM
merrill employee here. was told friday 1,000 layoffs in technology, and by Oct 15, 17% layoffs in ops, threatening the closing of Hopewell campus.
Here's what the buzz is. 90MM Montag told every MER trader to get long Fred/Fan pref. To the point that the firm was overextended. We tried to dump off on GPC, but no buyers. Q3 writedowns were expected to be announced at -10BLN.. no sales and trading staff expected to receive a bonus.
Posted by guest , Sep 14, 2008 10:24PM
was told friday 1,000 layoffs in technology, and by Oct 15, 17% layoffs in ops, threatening the closing of Hopewell campus.
Here's what the buzz is. 90MM Montag told every MER trader to get long Fred/Fan pref. To the point that the firm was overextended. We tried to dump off on GPC, but no buyers. Q3 writedowns were expected to be announced at -10BLN.. no sales and trading staff expected to receive a bonus.
Posted by guest , Sep 14, 2008 10:24PM
HOLY FUCK...WHAT IS GOING ON WITH THIS WORLD?!!!!!!!
Posted by guest , Sep 14, 2008 10:25PM
good news for hedgeslingers is the MER merger is a "credit event" that forces settlement of CDS's.
sort of think that might have forced the hands a bit -- if MER went down and the hegdes had to find bonds to deliver, there might not have been enough capital left in the world to do it.
Posted by guest , Sep 14, 2008 10:25PM
I know it's sunday but WTF is Charlie wearing?
Posted by guest , Sep 14, 2008 10:26PM
@ 104
shit happens.
Posted by guest , Sep 14, 2008 10:27PM
For the record #98 is #101. I'm not sure why I blogged myself in the third person but now I must go flogg myself.
Posted by guest , Sep 14, 2008 10:29PM
should Lehman employees go to work tomorrow? not that I am one fortunately, just curious
Posted by guest , Sep 14, 2008 10:33PM
If LEH doesn't file tonight (11:59 EST) all the netting trades from this afternoon are trash right? Am I missing something?
Posted by guest , Sep 14, 2008 10:38PM
I think Gasbag has aged about 10 years this weekend.
Posted by guest , Sep 14, 2008 10:40PM
@92: Does this also possibly affect Timmay?
Posted by guest , Sep 14, 2008 10:41PM
LEH employees need to call in sick and go to Chuck-E-Cheese tomorrow. There you can see a 9 foot lion singing and dancing like Elvis Presely. Think about it, why go some place where everyone is pissed off, crying, and depressed when you can go eat pizza and play video games.
You earned those sick days and then some.
SPODE
Posted by guest , Sep 14, 2008 10:44PM
Insurance companies can tap the FHLB products, with less restrictions than banks...
http://www.fhlbsf.com/membership/eligibility.asp
Great coverage today DB!
Posted by guest , Sep 14, 2008 10:47PM
@113, good advice- the examiner in BK will probably kill accrued vacation time though.
Posted by guest , Sep 14, 2008 10:50PM
AFAIK there's no vacation time payout so it doesn't matter really.
Posted by guest , Sep 14, 2008 10:51PM
feel bad for the guy in the yellow shirt being interviewed on dealbreaker...
Posted by guest , Sep 14, 2008 10:51PM
where are all the hilarious posters from 6-12 months ago ridiculing BofA as a bunch of hicks and originators of trailer home mortgages...?
i wonder if any of them worked at bear, lehman or merrill.
Posted by guest , Sep 14, 2008 10:54PM
should i use mayo tomorrow or switch to mustard or perhaps some hybrid relish?
Posted by guest , Sep 14, 2008 11:00PM
@ 118, still here and also expect you to show up to work tomorrow to pick up trash. the economy needs you.
Posted by guest , Sep 14, 2008 11:01PM
LEH Tokyo office here, though today is a Japan holiday many are in the office cleaning out their desks. We turned away all client business and have been suspended from trading on the ASX (Aussie exchange).
To all my fellow brothers in green: we had a good run, we stuck together through some tough times (98, 9/11) but looks like this one got us.
Posted by guest , Sep 14, 2008 11:04PM
@118 I was one of the people who was a advocate of BofA and against the insular NYC 'mecca of all' mentalty so this is a pretty interesting turn of events.
@board
What are the chances that the purchase doesnt go through for a myriad of reasons (least of which is shareholder non-approval). This may be one helluva an orchestrated move that doesn't have to succeed to succeed. It will crush shorts (LEH shorts were rolling into MER), bring some stability to the markets, and make it seem like the system is working [stem the flood so to speak].
A very clever ruse if it is one. Extraordinary times call for extraordinary lies?
Posted by guest , Sep 14, 2008 11:06PM
@ 122 fuck you.
Posted by guest , Sep 14, 2008 11:07PM
@110 that's what the release says.
Posted by guest , Sep 14, 2008 11:08PM
The Chinese didn't buy shares in Merrill.
It was the Singaporeans, but I think they are only going to lose $1billion at most because they were compensated for the fall in the value of their shareholding by John Thain at the end of the 2nd quarter to the tune of $2billion under the equity value claw back.
Yes, Thain and Montag are not what they were drummed up to be. Thain used $11million of his money to buy Merrill shares at over $30 a share.
As for Montag, BofA will look after him. But I can only imagine what will happen to him if he really did instruct his traders to buy FRE and FNM prefs...............All the more reason to sell to BofA before the release of 3rd quarter numbers.
Posted by guest , Sep 14, 2008 11:09PM
@120 - riiiiight.
anyway, i'd rather be the trash hauler than the trash.
Posted by guest , Sep 14, 2008 11:10PM
merrill employee here, have no idea what this means for me...just go in tomorrow with a black sharpie question mark on my forehead
Posted by guest , Sep 14, 2008 11:10PM
Banc of Amerrillca Securities... anyone? Anyone?
Posted by guest , Sep 14, 2008 11:14PM
Yes, Singapore SWF invested heavily in Merril in the last year.
With their purchase of Countrywide and Merril Lynch at generous prices, will BofA become the next short target?
Posted by guest , Sep 14, 2008 11:14PM
@126, exactly why we prefer to toss the trash before you pick it up.
Posted by guest , Sep 14, 2008 11:21PM
BofA-Countrywide-Merrill
This combination represents the new collective stance of Fed and the Treasury.
TOO BIG AND NASTY TO FAIL, BITCH!
Posted by guest , Sep 14, 2008 11:27PM
will they keep the Merrill name in anyway? kind of like Salomon Smith Barney? Merrill is a pretty storied name in the biz.
Posted by guest , Sep 14, 2008 11:28PM
@130. i don't get it... but you should run that joke by your friends (or colleagues?) at one of those firms. i'm sure they'd appreciate being described as "trash."
Posted by guest , Sep 14, 2008 11:30PM
my guess is Ken Lewis wanted the 15,000+ thundering herd. Doubt IB especially Global Markets adds much in the US to what BofA also has. Would expect the combined FICC staff to be reduced 40-50%. Thoughts?
Posted by guest , Sep 14, 2008 11:40PM
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&ssPageName=STRK:MESELX:IT&item=320299692197
WWW.FALLOFLEHMAN.COM FOR SALE ON EBAY
LOL
Posted by guest , Sep 14, 2008 11:45PM
IS THIS THING GOING TO HAPPEN AT 11:59 OR WHAT?
Posted by guest , Sep 14, 2008 11:51PM
@133 sounds like a happy marriage, doesn't it?
Posted by guest , Sep 14, 2008 11:56PM
The BofA-Merrill deal is not done.
Both parties just agreed to start talking at around $29 a share upon due diligence to be completed this week.
I am sure the price will be revised downward as BofA examines Merrill's books.
No motivation for BofA to sign on the deal until they see what becomes of Lehman on monday. Ken Lewis knows he is the only buyer.
Posted by Investorcluzo , Sep 15, 2008 2:20AM
@79 – okay, here’s my “rethink” as requested:
balance sheet:
$122 bn option arm portfolio largely doesn’t conform to gse standards, suggests more mark downs to come despite rescue of fannie and freddie;
ca mortgage portfolio has an average ltv of 90% - where do you think that goes to when current housing prices get taken into account?
$28bn of level III “assets” and another $214bn of level II assets (what % of these go level III this qtr?).
business:
ag edwards was a second rate midwest bucket shop before it was bought and became a second rate mid-atlantic bucket shop;
should we discuss the “investment bank” too? See any of the league tables lately – M&A (14 – us only), equity (11), fixed income (14)?
stock has historically traded at ~10% discount on a p/e basis to its peers, ask yourself what top tier firm trades at a discount that large to its peers? what is the market missing?
strategy:
telling the market that equity increased yoy, but failing to say the increase was due to $8bn of pfd and common issued, which really means equity fell by $2bn (half truths are no way to gain investor confidence);
forecast housing bottom at 20% vs case schiller (industry standard) of 30% - suggests that management isn’t being as conservative as they say they are.
while I agree that they are not in as bad a shape as wm or leh, the place is an also ran. does anyone remember who got second in the 100 m butterfly at olympics (besides that person) – no, but everyone knows phelps won. c’mon, be a winner johnny…if loyd b wants to play in the wb sandbox, I’d have to think his business was in pretty dire shape – plenty of large european banks with global presence to associate with before taking the g5 to charlotte…
Posted by guest , Sep 15, 2008 2:07PM
btw carney, i know a lot of people have thanked you for your weekend coverage, but add another to the list. It was pathetic all weekend and you were my saving grace!