Monday, 15 September 2008

Lehman Bros To File For Bankruptcy ?

"It appears that Lehman will file for bankruptcy and the risk of an immediate tsunami is related to the unwind of derivative and swap-related positions worldwide in the dealer, hedge fund, and buyside universe," Bill Gross, the chief investment officer of Pacific Investment Management Co (Pimco), told Reuters. Pimco oversees more than $812 billion in assets.

Uncertainty about the health of the U.S. financial sector was running high with the fate of the 158-year old investment bank Lehman Brothers still unclear. In addition, a takeover of Merrill Lynch & Co and huge asset sales by American International Group were being talked about in markets.

[Posted at the SpookyWeather blog, September 15th, 2008.]

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