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Investment Bank Bankruptcy?The Hunt Is On For Bankruptcy Candidates

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Talk continues on Wall Street about the rumors that spread in the early hours this morning that a major US investment bank had or was about to file for Chapter 11 bankruptcy protection.
“We've heard vague talk a US investment bank is in trouble,” a source tells Thomson Financial, which first reported the story.
While a bankruptcy of a major investment bank is not beyond the realm of possibility, we’re skeptical on this rumor. If this was real, we would expect that there would be even more rumor-wine leaking from the grape vine than there has been. Even Thomson sounds a skeptical note about the report. “Another dealer said he had heard that a banking group has filed for Chapter 11 protection, but pointed out that any such news would be on the SEC website,” Thomson writes.
But if there's one thing that has us wondering if there might be something to this story, it's the full-court public relations press coming from our nation's capital this morning. Treasury Secretary Hank Paulson went on CNBC this morning, before meeting with Federal Reserve chairman Ben Bernanke and Senator Chris Dodd. Cue shots of Bernanke walking through the halls of the Capitol building. Pan to Dodd press conference. Why all the pomp and circumstance unless something is very, very wrong?
Wall Street outlook down on talk large US bank filed for Chapter 11 protection [Thomson Financial via Forbes]


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