Wednesday, September 24, 2008

crisis, crisis, crisis..

The market doesnt look like its gona stand by the bull! U.S. stocks fell for a second day on concern Congress will hold up a $700 billion bank bailout that Federal Reserve Chairman Ben S. Bernanke said is critical to keeping the economy out of recession.

Citigroup Inc. and Bank of America Corp. tumbled more than 3 percent after members of the Senate Banking Committee expressed skepticism about Treasury Secretary Henry Paulson's plan. General Electric Co., the world's third-biggest company, retreated 5 percent as Merrill Lynch & Co. downgraded the stock on ``growing fundamental pressures.'' ConocoPhillips and Newmont Mining Co. slumped more than 2 percent as oil retreated following a record advance and gold and copper prices decreased.

The Standard & Poor's 500 Index slipped 8.74 points, or 0.7 percent, to 1,198.35 at 3:39 p.m. in New York, after earlier increasing 1.2 percent. The Dow Jones Industrial Average lost 87.69, or 0.8 percent, to 10,928, erasing a 128-point rally. The Nasdaq Composite Index declined 5.39 to 2,173.59. Two stocks fell for every three that gained on the New York Stock Exchange.

``The credit crunch is going to become far more severe than anybody thought two weeks ago,'' said Tom Wirth, senior investment officer at Chemung Canal Trust Co. in Elmira, New York, which manages $1.7 billion. ``In my opinion this is not understood by the politicians in Washington.''

Barclays Plc, the U.K. bank that bought parts of Lehman Brothers Holdings Inc.'s U.S. businesses, may cut as many as 5,000 jobs at the bankrupt company, Wall Street recruiters said.

The estimate, based on the $2.5 billion Barclays set aside for potential severance and retention costs, would mean half the Lehman employees transferred to the London-based company may be let go. Barclays, which paid $1.7 billion for the business, said it will decide in three months who will be offered permanent positions.

you know what my worries are..

UBS says costs of closing out LEH exposures below $300m

UBS is aware of a recent research report circulating in markets regarding its exposure to the Chapter 11 filing by Lehman Brothers. UBS confirms that its direct and counterparty exposures to Lehman Brothers, net of hedges, are now substantially closed out. UBS does not expect the total cost of closing out its exposures to Lehman Brothers to exceed $300m.

I trust Marcel Rohner.. That's what i could do now! :-)

1 comment:

Vin said...

Laxmi also does the tandav :)