Lehman Brothers bids farewell
After a week in which markets have bounced on the back of the US mortgage bailout, today was the day when it all came crashing back down to earth with news that Lehman Brothers has filed for bankruptcy and the UK division is in administration. Quite how a bank with over 150 years of history, tradition and experience in investment markets could collapse at such break neck speed has left many mystified.
Stock markets this morning have reacted badly to the news with markets around the world showing falls of around 5% as the news filtered through overnight. Despite a last ditch attempt by a number of investment companies (such as Barclays Bank) to set up a rescue package it has all gone horribly wrong this morning. The US government's reluctance to offer any kind of guarantee against future loses for the group seems to have scuppered any rescue attempt, but can you really blame them?
The US authorities are currently in the middle of taking Fannie Mae and Freddie Mac back under government control in order to save the US mortgage market from total collapse. There is sure to be more pain ahead in the immediate future with investors literally running for the exit this morning. The open on Wall Street this afternoon is vitally important with dealers praying that the sell off will not continue.
Share this..
Related stories
So Are The Oil Markets Are Being Squeezed By Suppliers?
While it is widely accepted that the current oil price does not fully reflect the supply and demand situation, comments from BP this week have thrown some light on what is really happening in the oil markets. For the first time since 2002 the amount of oil supplied by the oil companies has fallen, with a decline of 0.2% in 2007. When you consider this is at a time when oil consumption has risen...
Read MoreLondon named world city of commerce
London has been named as the world's leading commercial hub, overtaking New York as the premier financial centre.
New research from MasterCard Worldwide places the UK capital at the top of a list of the world's 50 most influential cities on the global economy.
The panel of leading economists that compiled today's index praised London's flexibility as an operating environment for...
New Speaker demands tightening of expenses rules
As we covered in an earlier post, there is growing disgust at the UK Parliamentary system with rumours of unrest amongst MPs who stand to have their expenses system curtailed. John Bercow, the new Commons Speaker, has warned MPs that it would be a "catastrophic mistake" to water down the recommendations from Sir Christopher Kelly at a time when the UK public is looking for closure on the...
House prices fell in February
House prices across the UK fell by 0.1 per cent in February, according to government figures.Statistics from the Department for Communities and Local Government (DCLG) show that the average UK house price fell from £205,399 in January to £205,102 a month later.Despite the slip the year-on-year rate of property value growth accelerated to 12.1 per cent, up from 10.9 per cent in January, however.T...
Read MoreNew banking code promises fairer deal for customers
UK borrowers are set to benefit from the introduction of a new code of conduct for lenders, it has been announced. As of today, the code has been amended to ensure banks adopt a more proactive approach to preventing customers from falling into debt. Under the new rules, banks must study the financial records of customers and contact those who are at risk of suffering difficulties. They are also to...
Read More