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."
Posted by guest , Sep 14, 2008 7:37PM
The "emergency lending pool" is essentially socialism. You might as well nationalize the banking/investment industry.
Posted by guest , Sep 14, 2008 7:37PM
...............
Posted by guest , Sep 14, 2008 7:38PM
so it's all about MER now?
F this.
Posted by Seaman Bodine , Sep 14, 2008 7:41PM
Why would BAC buy MER for 29? Seriously, they can wait three days and get it for 5. I call complete BS.
Posted by guest , Sep 14, 2008 7:41PM
An emergency lending pool only solves the long-run problem if the money comes from an outside source. If it comes from the banks themselves, isn't that just the same as being indivisibly tied to each other's performance with counterparty risk?
$$$
Posted by guest , Sep 14, 2008 7:41PM
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299643537
Posted by JP , Sep 14, 2008 7:43PM
#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.
Posted by guest , Sep 14, 2008 7:43PM
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
Posted by guest , Sep 14, 2008 7:44PM
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 does it get rescinded?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,
Posted by guest , Sep 14, 2008 7:45PM
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320299643537
Posted by guest , Sep 14, 2008 7:45PM
for those of you that need to de-stress a bit
http://www.tube8.com/hardcore/brigitta-bulgari/38132/
Posted by diablo , Sep 14, 2008 7:45PM
#5
Agree, but who would that outside source be? Paulson's US Treasury or the Fed?
Posted by Seaman Bodine , Sep 14, 2008 7:45PM
@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?
Posted by guest , Sep 14, 2008 7:45PM
#7 WHERE'S THE RELIEF FOR LEH SHAREHOLDERS????? Sorry, your comment makes no sense. Been following the news today?
Posted by guest , Sep 14, 2008 7:47PM
$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.
Posted by guest , Sep 14, 2008 7:47PM
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...
Posted by guest , Sep 14, 2008 7:47PM
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?
Posted by guest , Sep 14, 2008 7:48PM
#11 Is Ms Bulgari working for Lehman at Merrill?
Posted by guest , Sep 14, 2008 7:50PM
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...
Posted by guest , Sep 14, 2008 7:50PM
#11 - Is Ms. Bugatti working at Lehman or at Merrill?
Posted by guest , Sep 14, 2008 7:50PM
#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
Posted by Seaman Bodine , Sep 14, 2008 7:53PM
@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
Posted by guest , Sep 14, 2008 7:54PM
#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
Posted by guest , Sep 14, 2008 8:00PM
isnt singapore the largest shareholder at MER?
what does this govt think of the merger?
Posted by guest , Sep 14, 2008 8:01PM
Carney, most traffic ever? Or does BSC weekend top this?
Posted by guest , Sep 14, 2008 8:02PM
CNBC just started a special report.
Posted by guest , Sep 14, 2008 8:02PM
@15 many firms get excess coverage over SIPC
Posted by guest , Sep 14, 2008 8:02PM
PLEASE LOOK AT GASPARINO
Posted by guest , Sep 14, 2008 8:03PM
even shamwow can't clean his mess
Posted by guest , Sep 14, 2008 8:04PM
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.
Posted by guest , Sep 14, 2008 8:04PM
Charlie is looking gayer and gayer. Are him and that biotech guy on cnbc an item?
Posted by guest , Sep 14, 2008 8:05PM
@15 many firms get excess coverage over SIPC
Posted by guest , Sep 14, 2008 8:06PM
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?
Posted by guest , Sep 14, 2008 8:07PM
Is Charlie of CNBC a top or a bottom?
Posted by guest , Sep 14, 2008 8:07PM
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.
Posted by guest , Sep 14, 2008 8:09PM
Cramer's reception sucks...get out of Greenwich, Jin
Posted by guest , Sep 14, 2008 8:16PM
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).
Posted by guest , Sep 14, 2008 8:16PM
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>
Posted by guest , Sep 14, 2008 8:17PM
Melissa Lee is looking hot tonight.
Posted by Seaman Bodine , Sep 14, 2008 8:18PM
@38 - i agree; if BAC does pay that (or if that is even close / serious), why would LEH file BK tonight?
Posted by guest , Sep 14, 2008 8:19PM
melissa lee is getting fatter and fatter too much bulgoki
Posted by guest , Sep 14, 2008 8:22PM
@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?
Posted by Seaman Bodine , Sep 14, 2008 8:25PM
how great would it be if GS did everything right, but was on the hook for LEH cds?
Posted by guest , Sep 14, 2008 8:26PM
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=270276192100
WWW.BANKOFAMERICAMERRILLLYNCH.COM
Posted by guest , Sep 14, 2008 8:27PM
Hey Michelle, I've got some collateral for you.
Posted by guest , Sep 14, 2008 8:28PM
yeah bitch looks like she got wise and started to starve herself a little
Posted by guest , Sep 14, 2008 8:28PM
These talking heads need to shut the fuck up and bathe in some mayo
Posted by guest , Sep 14, 2008 8:30PM
caruso cabrera is losin it
Posted by guest , Sep 14, 2008 8:33PM
gayparino is fucking someone on the MER trading floor
Posted by guest , Sep 14, 2008 8:35PM
#6
www.andrewismybitch.com
SPODE
Posted by guest , Sep 14, 2008 8:38PM
Too long, didn't read.
Posted by guest , Sep 14, 2008 8:40PM
MERRILL BOUGHT
Posted by guest , Sep 14, 2008 8:41PM
MER BOFA DEAL APPROVED. HOLY FUCKING SHAMWOW!
Posted by guest , Sep 14, 2008 8:41PM
CNBC just reported that BoA approved the deal to buy MER for $29
Posted by Seaman Bodine , Sep 14, 2008 8:42PM
somebody is dividing by zero
Posted by guest , Sep 14, 2008 8:42PM
Done deal. Bank of Merrill it is.
Posted by guest , Sep 14, 2008 8:43PM
holy fucking mary mother of christ
Posted by guest , Sep 14, 2008 8:43PM
god bless the chinese guy on bloomberg... un beso MER
Posted by guest , Sep 14, 2008 8:44PM
DEAL GOOD
Posted by Investorcluzo , Sep 14, 2008 8:44PM
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.
Posted by guest , Sep 14, 2008 8:46PM
Having to work on a Sunday night is so "first year".
Posted by guest , Sep 14, 2008 8:46PM
Fuck now the fed is going to take equities at the window.
Holy shit things are getting desperate.
Posted by guest , Sep 14, 2008 8:48PM
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.
Posted by guest , Sep 14, 2008 8:49PM
BoFa just bought Merryl
Posted by guest , Sep 14, 2008 8:49PM
BoFa just bought Mer
Posted by guest , Sep 14, 2008 8:49PM
is that Carney waving at CNBC cameras from in front of lehman HQ?
Posted by guest , Sep 14, 2008 8:50PM
per Gasbag: BAC - MER merger is a done deal.
Posted by Seaman Bodine , Sep 14, 2008 8:50PM
this is at 29 NOW - wonder where BAC stock will be when the deal closes?
Posted by guest , Sep 14, 2008 8:51PM
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?
Posted by guest , Sep 14, 2008 8:51PM
So much for the Bank of Brothers
Posted by guest , Sep 14, 2008 8:52PM
@64 source?
Posted by guest , Sep 14, 2008 8:53PM
@ 70: Agreed. "American Lynch" doesn't have quite the right ring to it.
Posted by guest , Sep 14, 2008 8:54PM
CNBC reported BAC and Merill deal is done. 29 dollars.
Posted by guest , Sep 14, 2008 8:55PM
Wish CNBC would spend a few mins less on commercials...
Posted by guest , Sep 14, 2008 8:56PM
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
Posted by DrederickTatum , Sep 14, 2008 8:56PM
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.
Posted by guest , Sep 14, 2008 8:56PM
@ 73 -- collective sigh of relief.
Posted by Seaman Bodine , Sep 14, 2008 8:56PM
wow - John Thain SCHOOLED Dick Fuld
Posted by guest , Sep 14, 2008 8:57PM
@62. Wow...to have to do that, even on a temporary basis. Insane.
Posted by guest , Sep 14, 2008 8:59PM
www.BankOfMerrillLynch.com
goes to the Fed.
Strange.
Posted by guest , Sep 14, 2008 8:59PM
@ 78: yes. it's best to seek a merger before your stock falls 77%
Posted by Investorcluzo , Sep 14, 2008 9:00PM
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.
Posted by guest , Sep 14, 2008 9:01PM
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???
Posted by guest , Sep 14, 2008 9:01PM
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???
Posted by guest , Sep 14, 2008 9:02PM
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???
Posted by guest , Sep 14, 2008 9:02PM
BAC-MER was just announced @ $29.
Posted by guest , Sep 14, 2008 9:04PM
can we get some material, non-public information here jc?
Posted by guest , Sep 14, 2008 9:04PM
now they can circle around and pick up LEH for a dime on the dollar.
Posted by Seaman Bodine , Sep 14, 2008 9:05PM
i can't believe they went from breaking news to some jobbers talking about regulations
Posted by guest , Sep 14, 2008 9:06PM
Strange night all around.
Posted by guest , Sep 14, 2008 9:07PM
uh oh...roubini just put the smack down. He's so gloomy.
Posted by guest , Sep 14, 2008 9:07PM
This guy just said MS and GS might not make it through tomorrow.
Posted by guest , Sep 14, 2008 9:07PM
@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.
Posted by guest , Sep 14, 2008 9:07PM
Deal legitimizes LEH's value, unless they underwater in toxics.
Posted by guest , Sep 14, 2008 9:08PM
@ 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.
Posted by guest , Sep 14, 2008 9:09PM
@91 - You're right, he has some points, but saying Goldman should look for a buyer tomorrow is a strong statement for sure.
Posted by guest , Sep 14, 2008 9:11PM
Roubini sounds like Dracula (96 again)
Posted by Investorcluzo , Sep 14, 2008 9:12PM
@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.
Posted by guest , Sep 14, 2008 9:14PM
what are associate numbers?
Posted by guest , Sep 14, 2008 9:16PM
vince offer to provide bridge financing to AIG!
Posted by guest , Sep 14, 2008 9:17PM
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
Posted by guest , Sep 14, 2008 9:17PM
bad move to getr interviewed
Posted by Investorcluzo , Sep 14, 2008 9:18PM
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...
Posted by guest , Sep 14, 2008 9:19PM
@ 78 -- the Fed just SCHOOLED John Thain.
Posted by guest , Sep 14, 2008 9:20PM
@103 - nope SVP - just looked him up on LinkedIn
Posted by guest , Sep 14, 2008 9:20PM
That guy will never get another Settlements job.
Posted by guest , Sep 14, 2008 9:22PM
Fucking red socks fan too...
Posted by guest , Sep 14, 2008 9:27PM
burt ely??? polo shirt with crewneck white undershirt?
Posted by guest , Sep 14, 2008 9:30PM
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."
Posted by guest , Sep 14, 2008 9:33PM
Bess - better hurry with that interview with coffee cart guy..........
Posted by guest , Sep 14, 2008 9:36PM
@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.........
Posted by guest , Sep 14, 2008 9:37PM
new dipshit in equity sales just went on camera in tears. nice move.
Posted by guest , Sep 14, 2008 9:39PM
@112 - Okay, lighten up Francis, give the guy a break
Posted by guest , Sep 14, 2008 9:43PM
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...
Posted by guest , Sep 14, 2008 9:44PM
@114 - good reference
Posted by guest , Sep 14, 2008 9:45PM
Hedgies that had heavy short positions on MER at $15mm will be decimated.
Posted by Investorcluzo , Sep 14, 2008 9:45PM
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.
Posted by guest , Sep 14, 2008 9:46PM
With all this excitement, I wonder if Mordechai was able to return his textbooks........
Posted by guest , Sep 14, 2008 9:49PM
Gasbag looks just like Gotti junior
Posted by girl , Sep 14, 2008 9:54PM
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.
Posted by SlashAndBurn , Sep 15, 2008 12:14AM
@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/
Posted by guest , Sep 15, 2008 12:19AM
ASX suspends LEH as participant
source: Bloom....