The Associated Press is reporting that there are two plans at work to provide for two different tools for staunching any contaminant from a Lehman Brother’s collapse.
- The Fed is considering opening up it’s emergency lending facilities, perhaps by being open to more toxic collateral or by allowing more borrowing.
- Meanwhile, banks are mulling the creation of an emergency lending pool of money worth up to $50 billion that could be used to aid faltering financial companies.
The Wall Street Journal says Merrill’s board is meeting right now to discuss an all-stock buyout offer from Bank of America: “Details of the terms under discussion weren’t immediately clear but Merrill’s board was reportedly meeting to approve an offer at $29 a share, which would value the firm above $40 billion.”
The “emergency lending pool” is essentially socialism. You might as well nationalize the banking/investment industry.
……………
so it’s all about MER now?
F this.
Why would BAC buy MER for 29? Seriously, they can wait three days and get it for 5. I call complete BS.
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299643537
#4 – for the same reason Bear ended up going for higher than $2/share – because the gov’t wants there to be some relief for shareholders so they don’t get completely fucked.
29 is better than ZERO. Never thought it would come to this, but ML employees should be jumping for joy they;ll get BAC paper in exchange for the single ply toilet tissue… Herbies… they got now
what happens if you have a job offer at merrill? does it get rescinded? do i still join merrill after merger? any feedback will be much appreciated, no bs i am already stressed. Thanks,
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299643537
for those of you that need to de-stress a bit
http://www.tube8.com/hardcore/brigitta-bulgari/38132/
#5
Agree, but who would that outside source be? Paulson’s US Treasury or the Fed?
@7 – that’s crazy; the gov’t doesn’t give a rats about shareholders; or maybe i am wrong, please explain why they care?
furthermore, why does the gov’t (or rather, how) get to strongarm BAC into overpaying…again, nobody can suggest that MER won’t be at 5 in a few days, if no BAC offer…so why make the offer? What can the gov’t do to BAC to MAKE them do this?
#7 WHERE’S THE RELIEF FOR LEH SHAREHOLDERS????? Sorry, your comment makes no sense. Been following the news today?
$50 billion isn’t even close to enough to cover LEH’s callable liabilities.
Complete chaos tomorrow AM as people rush out of LEH.
Hey isn’t there a 500K limit to SIPC coverage?
Plenty of uninsured brokerage accounts at LEH.
The SIPC could easly get wiped out too.
Best to get your money out of brokerage accounts entirely and into $100K CDs.
Call your broker at 8:45am and just wait on hold so you can get your money out first.
Not to echo what a few commentators have said as well as JC but wtf is wrong with the media? How is that not covered on any channel? Does no one else in this country realize the implications of what is happening?
Oh well, go back to your happy little lives of watching reruns of the George Lopez show…you f’in idiots…
What happens to BAC stock tomorrow – closed @ 33.74. My bet is $24 tomorrow. Why the hell would they pay $29 for MER. After LEH don’t you think MER would be happy to get taken out at$20?
#11 Is Ms Bulgari working for Lehman at Merrill?
Ken Lewis just gotta buy something. Did a shitty deal for Countrywide; he’ll do a shitty deal for ML. And who knows; maybe JPM will get it all in ~12 months with President Obama’s blessing and additional Fed gifts…
#11 – Is Ms. Bugatti working at Lehman or at Merrill?
#4 – if they completely shit can the ML employees who hold a truck load of MER paper, how many of the brokers or managers at MLAM with their 1.4Trl of AUM do you think will stay in a firesale if that is what BAC wants to get their hands on. Will be interesting to see how many of the PMs at Neuberger will stay or what kind of retention packages they get after the LEH auction is done
@16 – dunno, but I get the feeling this isn’t that big a deal…bk makes a lot of sense; anything worth something gets out clean, and all the other stuff gets marked down…i seriously doubt any retail accounts get affected
#20, she was head of Media banking at LEH but recently left to spend more time with her family. Citadel is trying to hire her though
isnt singapore the largest shareholder at MER?
what does this govt think of the merger?
Carney, most traffic ever? Or does BSC weekend top this?
CNBC just started a special report.
@15 many firms get excess coverage over SIPC
PLEASE LOOK AT GASPARINO
even shamwow can’t clean his mess
As the news sinks in for Lehman Brothers employees that their firm will file for bankruptcy, it seems a certain melancholy has set in.
Take this unnamed soon-to-be-former Lehman executive, who has sent this farewell e-mail to friends and colleagues. In the letter, the executive compares employees in Lehman’s credit business to Ronnie Lott, the defensive back who overcame a terrible injury to help lead the San Francisco 49ers to the playoffs in 1986. (Incidentally, Mr. Lott is now a private equity executive whose firm is suffering from the credit crisis.)
Read the full letter, obtained by DealBook, after the jump.
—– Original Message —–
From: XXXXXXXXXXXXXXXXXXXXXXX
To: undisclosed-recipients
Sent: Sun Sep 14 18:52:29 2008
Subject: Thank You Everyone, Contact information below
The 1985 NFL regular season was ending for the 49ers. Ronnie Lott and Cowboys running back Timmy Newsome collided in such a gladiator-esque hit that Ronnie’s left pinky literally lay scattered on the turf in bone fragments and parts. Ronnie would have none of it. Pain was not the issue. Winning was. After a brief sideline trip, Ronnie endured all pain, returned
to the battlefield and moved on to the playoffs. He taped up his fingers against the Giants in the first round where the 49ers season ended.
Then Ronnie faced a choice … risk missing some of the next season and potentially reinjuring a surgically reconstructed hand or just cut the end of his finger off and get ready for the battlefield. The choice was obvious for Ronnie. His gut knew no other way. The end of the finger would be gone forever, and he would lead the 49ers into the playoffs the next year whilst
returning to the Pro Bowl for the third time. Nothing more need be said about this iconic professional, and all that he represents to the world that knows him.
Everyone in the Lehman credit business knows the Ronnie Lott story. His story and character encompass what goes on here everyday.
It actually carries beyond this floor and throughout the entire firm.
There’s a new season that starts on Monday.
Take my finger.
Charlie is looking gayer and gayer. Are him and that biotech guy on cnbc an item?
@15 many firms get excess coverage over SIPC
CNBC saying AIG looking to raise ….$50bn of liquidity by Monday AM (assets sales and equity and?)… not surprisingly dollar weakening…let’s see if the Aussies are still lovin’ the metals…where’d those SWFs go?
Is Charlie of CNBC a top or a bottom?
The writing is on the wall. The Fed decided to let Lehman fall, and encouraged BAC to price an offer @~29 for MER to show the market that (other) financials are worth something. #4′s sentiment is correct, and that sentiment would have caused further damage.
Cramer’s reception sucks…get out of Greenwich, Jin
Love that Bill Gross shows up to discuss this issue.
WTF he got his government bailout.
He should just not comment on these matters for at least a couple of weeks.
Cramer is a buyer of AIG (he was also a buyer of BSC and LEH).
I call BS on BAC buying MER for $25-30 a share.
Doing so would expose BAC to massive litigation exposure as it is pretty obvious MER will soon be available for 90% off that price.
I doubt the BAC board will approve this supposed action of a stressed out empire building CEO>
Melissa Lee is looking hot tonight.
@38 – i agree; if BAC does pay that (or if that is even close / serious), why would LEH file BK tonight?
melissa lee is getting fatter and fatter too much bulgoki
@41. I looks like she lost some weight from the beginning of the year (don’t really follow CNBC as much). Maybe it’s the camera, lighting, and make-up?
how great would it be if GS did everything right, but was on the hook for LEH cds?
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=270276192100
http://WWW.BANKOFAMERICAMERRILLLYNCH.COM
Hey Michelle, I’ve got some collateral for you.
yeah bitch looks like she got wise and started to starve herself a little
These talking heads need to shut the fuck up and bathe in some mayo
caruso cabrera is losin it
gayparino is fucking someone on the MER trading floor
#6
http://www.andrewismybitch.com
SPODE
Too long, didn’t read.
MERRILL BOUGHT
MER BOFA DEAL APPROVED. HOLY FUCKING SHAMWOW!
CNBC just reported that BoA approved the deal to buy MER for $29
somebody is dividing by zero
Done deal. Bank of Merrill it is.
holy fucking mary mother of christ
god bless the chinese guy on bloomberg… un beso MER
DEAL GOOD
nooooo! bofa/mer boards approved a deal. if it is really at $29 as being reported, that’s a big premium to the $21.43 book value and tangible book of $16.30 at 6/30. bofa will take yet another hit to its tier 1 ratio. fking kenny boy and his empire building…
charlie – the answer to your question: “why sell if you can get a premium?” it’s pretty simple, to avoid a run on the bank a la bsc/leh. tricky dick probably could have had a deal several weeks ago had he not drank his own kool-aide. hubris is a tough pill to swallow.
Having to work on a Sunday night is so “first year”.
Fuck now the fed is going to take equities at the window.
Holy shit things are getting desperate.
ken lewis is an idiot. although this deal will be great for the system.
fed now accepts foodstamps at the window. LEH sale/liquidation may be postponed as a result.
BoFa just bought Merryl
BoFa just bought Mer
per Gasbag: BAC – MER merger is a done deal.
this is at 29 NOW – wonder where BAC stock will be when the deal closes?
Q:If you’re the seller of protection, and you smell blood, you’d be shorting the stock and looking to aquire the bonds to fine tune your hedge, would you not? Or scrambling to close out your trade? Or both?
So much for the Bank of Brothers
@64 source?
@ 70: Agreed. “American Lynch” doesn’t have quite the right ring to it.
CNBC reported BAC and Merill deal is done. 29 dollars.
Wish CNBC would spend a few mins less on commercials…
In the body of the post please spell “its” like this – there is no reason to lose your spelling over the end of the financial world. Thanks
Here’s a complete guess on the high price BOA is paying. Take it as 100% speculation: There must be contingencies on the $29.00 price… No way does B of A make that deal if its unnecessary.
Maybe BOA/MER can sell the high price publicly to maintain faith among counterparties… then, possibly, if benchmarks aren’t met on CDO values there could be a lower purchase price.
@ 73 — collective sigh of relief.
wow – John Thain SCHOOLED Dick Fuld
@62. Wow…to have to do that, even on a temporary basis. Insane.
http://www.BankOfMerrillLynch.com
goes to the Fed.
Strange.
@ 78: yes. it’s best to seek a merger before your stock falls 77%
kenny boy needs to get lynched after this deal…how do you perform adequate due diligence in one weekend? it’s not clear to me that this deal was “in the works”. I pray they come out with some news of gov’t support (not likely). look at aig, used to trade at $188 billion, now it’s market cap $32 billion (less than target, the retailer) – bigger is not necessarily better.
The premium in the BAC-MER deal has to be less than what it would have cost BAC if MER went tits up. So, you do the deal and save yourself a few bucks? What say ye???
The premium in the BAC-MER deal has to be less than what it would have cost BAC if MER went tits up. So, you do the deal and save yourself a few bucks? What say ye???
The premium in the BAC-MER deal has to be less than what it would have cost BAC if MER went tits up. So, you do the deal and save yourself a few bucks? What say ye???
BAC-MER was just announced @ $29.
can we get some material, non-public information here jc?
now they can circle around and pick up LEH for a dime on the dollar.
i can’t believe they went from breaking news to some jobbers talking about regulations
Strange night all around.
uh oh…roubini just put the smack down. He’s so gloomy.
This guy just said MS and GS might not make it through tomorrow.
@82–regarding the diligence issues: Generally I would totally agree with you, but there might be some sort of diligence out in the merger agreement that allows them to walk before the deal is consummated. Also, because of the strange circumstances of this weekend, I would wager that courts would be more lenient about the board’s duties.
I’m very interested to read the agreement when it goes public.
Deal legitimizes LEH’s value, unless they underwater in toxics.
@ 87 Disclosing material nonpublic information is only naughty if you have a duty to keep it confidential. I don’t see where Carney has a duty here.
@91 – You’re right, he has some points, but saying Goldman should look for a buyer tomorrow is a strong statement for sure.
Roubini sounds like Dracula (96 again)
@93 – fk the courts. by the time this gets to the judiciary system, the shareholders will have been smoked with little hope of getting back any of the value that was lost. that said, I agree with your comments.
roubini needs some red bull – gs and ms need to go find a buyer. seriously, this guy is a hack. and what’s with the polo with a crew neck undershirt – so jv.
what are associate numbers?
vince offer to provide bridge financing to AIG!
can we discuss this for a minute:
* wolf looks like he came directly from the golf course
* black’s jacket/slacks combo is highly questionable
* vikram well done!
http://www.nytimes.com/2008/09/15/business/15lehman.html
this guy is going to get fired – forget severance! I can’t believe he agreed to be on air. what an idiot, I bet compliance calls his a$$ before he gets home. 5 year veteran – guy is probabaly an associate…
@ 78 — the Fed just SCHOOLED John Thain.
@103 – nope SVP – just looked him up on LinkedIn
That guy will never get another Settlements job.
Fucking red socks fan too…
burt ely??? polo shirt with crewneck white undershirt?
i actually think that interview wasnt that bad, all he said was good things about the firm and was fairly vague.
In other news, I can’t help but think about that LEH lacrosse player talking about BSC and saying “Well i guess we had the last laugh.”
Bess – better hurry with that interview with coffee cart guy……….
@109 – he was a decent guy, but it just seems imprudent to be speaking at all – who knows, maybe he’ll get a job out of it………
new dipshit in equity sales just went on camera in tears. nice move.
@112 – Okay, lighten up Francis, give the guy a break
I can’t believe that guy would go on TV. I am sure he is not thinking clearly, but you have ever relevant person on the planet watching you. Equities in Dallas…
@114 – good reference
Hedgies that had heavy short positions on MER at $15mm will be decimated.
when I was at jp morgan (when they were at 60 wall), I was filmed on cnbc with a couple of other analysts at a bar. they were doing some special non-business related. we were all called into compliance the next morning. suffice it to say, never go on camera and mention the name of your firm unless you have been cleared.
With all this excitement, I wonder if Mordechai was able to return his textbooks……..
Gasbag looks just like Gotti junior
Give those guys a break, Stafford wasn’t even that bad and equities guy was obviously an overly emotional deer caught in the headlights. I doubt they need your shitty commentary to add to their misery, and the rest of us sort of cringe reading it.
My thoughts and prayers to everyone at LEH.
@16 — “Does no one else in this country realize the implications of what is happening?”
That’s sort of ironic. The country, and the Street, didn’t realize the implications of toxic mortgages for the last 5+ years.
It’s utterly retarded that a decent house in a decent town commutable to NY City costs about $700,000.
Houses like this Bulldozer Special should cost $150K, not $700K:
http://www.realtor.com/realestate/summit+city-nj-07901-1102882426/
ASX suspends LEH as participant
source: Bloom….
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