DealBroken: Inflation and Lehman Up. Core Inflation, Bear Stearns and Goldman Down. The Week That Was On Wall Street

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Lehman Brothers continued its record as a contrary indicator on Wall Street, posting record profits in the same week that Goldman Sachs and Bear Stearns disappointed investors. Subprime worries worried. The Securities and Exchange Commission repealed rules restricting short-selling while a stock’s price is dropping. Yields’ on five-year Treasuries soared. The type of inflation that few on Wall Street watch rose precipitously, while the kind that is watched slowed. Stocks rallied on the news. The New York Stock Exchange and the National Association of Securities Dealers issued rules on a new technology involving some sort of ‘electronic communication.’
JP Morgan announced that it would return to lower Manhattan, building a tower on the site of the crumbling remains of the Deutsche Bank building. Jesse Jackson demanded that his friends on Wall Street get a sweeter taste of the Blackstone IPO. Capitol Hill lawmakers followed suit, introducing legislation to penalize private equity companies and hedge funds that go public.
The Bancroft family rejected a plan crafted by their own lawyers to protect the editorial independence of the Wall Street Journal. Rumors began to circulate that the owners of the Financial Times might bid for Dow Jones, perhaps in connection with General Electronic. The Chicago Mercantile Exchange increased its bid for the Chicago Board of Trade. TheStreet.com was forced to cancel the first week of its ‘Beat The Street’ online stock-picking contests after it learned that some contestants were using mysterious trading strategies that it said “could not be duplicated in the real world.”

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