What a Surprise
At the beginning of the week Lehman Brothers filed for bankruptcy. Lehman Brothers were the forth largest investment bank in America. The loss of Lehman Brothers have clearly put a shadow over the stock market. The loss has not only affected thousands of employers but has even caused the CEO Richard Fuld, who hid and avoided sealing the deal between Lehman Brothers and Barcalys. At the same time Bank of America bought off Merrill Lynch, one of the worlds leading financial management and advisory companies. These are two big companies but only a small portion of the many failed ones.
The World is not only facing losses from those two companies but American International Group Inc. (AIG) the world largest insurance company is also facing with immense problems, which was aided with $85 billion by the FED. The aid or the bail from the FED was important due to the high dependence on AIG. The FED said, "The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance."
This is only the happenings of one weeks period, but it was definitely a large surprise to everyone, so who will be next? JP Morgan maybe?
At the beginning of the week Lehman Brothers filed for bankruptcy. Lehman Brothers were the forth largest investment bank in America. The loss of Lehman Brothers have clearly put a shadow over the stock market. The loss has not only affected thousands of employers but has even caused the CEO Richard Fuld, who hid and avoided sealing the deal between Lehman Brothers and Barcalys. At the same time Bank of America bought off Merrill Lynch, one of the worlds leading financial management and advisory companies. These are two big companies but only a small portion of the many failed ones.
The World is not only facing losses from those two companies but American International Group Inc. (AIG) the world largest insurance company is also facing with immense problems, which was aided with $85 billion by the FED. The aid or the bail from the FED was important due to the high dependence on AIG. The FED said, "The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance."
This is only the happenings of one weeks period, but it was definitely a large surprise to everyone, so who will be next? JP Morgan maybe?
No comments:
Post a Comment