Monday, September 15, 2008

Lehman, AIG: Late Night

by Calculated Risk on 9/15/2008 12:00:00 AM

Update: Reuters Headline: Lehman Brothers Holdings Inc says filing for Chapter 11 bankruptcy; says no subsidiaries will be included in filing

Original: There is no news yet of a Lehman bankruptcy filing. Recent stories suggest the bankruptcy will be filed before the market opens on Monday.

An announcement from AIG is expected early Monday morning on their restructuring plan. The AIG news might be the biggest shocker of the day.

Scroll down to see stories on BofA buying Merrill, the Fed's initiatives, and the banks $70 billion liquidity fund.

Update: Krugman: Financial Russian Roulette

Will the U.S. financial system collapse today, or maybe over the next few days? I don’t think so — but I’m nowhere near certain. You see, Lehman Brothers, a major investment bank, is apparently about to go under. And nobody knows what will happen next.
Update2: for those with access, this WSJ article compares the Lehman marks to AIG and Citi, and suggests there are huge write downs coming for both AIG and Citi: Wake-Up Call: Lehman's Mortgage Marks