Lehman Europe rescue hits the buffers
While there had been talk of rescue packages, takeover bids and mergers it seems that the once profitable Lehman Europe division is set to close down with the fixed-income division first in the queue. Even though we have seen some areas already saved by third party intervention it seems as though what remains will now be left to disappear into history. But what happened to all of the interest and good intentions?
In the aftermath of the US government's decision to put forward a rescue package to Congress we saw much interest in what are commonly referred to as distressed assets - assets which have hit rock bottom and are there for the taking. Lehman Europe was part of such a class of assets currently on the table but the latest downturn in the financial crisis has left many potential suitors licking their wounds and deciding to retain as much funding in house as possible.
We will see literally thousands of skilled City workers on the streets and unable to find employment elsewhere with more and more City firms looking to reduce their staffing levels. While there will no doubt be positions opening up as and when the markets do recover, nobody knows when this will happen.
Share this..
Related stories
UK savers concerned about future outlook
David Cameron the leader of the Tory party has been very vocal over the last few days in his belief that UK savers should be protected from falling interest rates and falling income streams. He believes the government should bring in tax relief on interest earned so that savers are able to maintain a steady income to avoid financial hardship.
This is the latest in a number of potent...
Government aims to tackle benefits problem in the UK
The UK government has today come out with a very strong attack on the benefits culture which has engrossed itself into many areas of the UK. The new back to work programme is to be introduced next year and those who do not seem willing to even consider going back into employment may well have their benefits cut. However, the move has caused a serious split in the Labour Party with many MPs suggest...
Read MoreRescue plan B needed fast
Just a couple of days ago markets reacted with joy to the massive rescue package announced by the UK government, which together with the US deal was seen by many as the way forward, the great escape. But a few days in the world of finance is a long time and today we see stock markets around the world collapsing, investors selling whatever stocks they can get any money for and general panic.
...
West Bromwich building society under more pressure
Rightly or wrongly the West Bromwich building society is this evening under extreme pressure after a credit rating downgrade by Fitch and news that the Financial Services Authority is looking to further stress test a number of potentially vulnerable building societies in the UK. As we covered in one of our earlier post, the West Bromwich building society has been at the centre of significant rumou...
Read MoreLloyds bank to decide on £10 billion rights issue over next seven days
It is rumoured that Lloyds bank will decide whether or not to go ahead with a proposed £10 billion rights issue by 23 October. Market insiders have suggested the company is coming to a critical point in its refloating and refinancing of the operation, something which will need the go-ahead from the UK government, the Treasury and various financial regulators. This is a very important period for L...
Read More