Lehman Brothers to file for bankruptcy - The Orange Room

Dry Ice

WASHINGTON (AFP) — US investment bank Lehman Brothers announced early Monday that it intended to file for bankruptcy "in order to protect its assets and maximize value."

The financial firm said in a statement that the filing was authorized by its board of directors and will occur at the United States Bankruptcy Court for the Southern District of New York Monday.

"Customers of Lehman Brothers, including customers of its wholly-owned subsidiary, Neuberger Berman Holdings LLC, may continue to trade or take other actions with respect to their accounts," the statement said.

Venom

Dubai-based staff at the Middle East headquarters of Lehman Brothers were unsure of their future Monday after the bank said it will file for Chapter 11 bankruptcy in the U.S.

"Our office is all in a state of shock, everyone is in meetings now because of the situation," a Lehman Brothers office manager, who declined to be named, told Zawya Dow Jones at their offices in the Dubai International Financial Centre.

Other employees at the bank said people were unsure of the immediate impact the firm's demise will have at its Dubai hub, home to 40 employees. "No one knows what's happening, we're all waiting to find out what's next," a Lehman's banker in Dubai, who declined to be identified, said outside the company's office.

Adrian Sender, director and chief administrative officer for Lehman Brothers in Dubai and Qatar told Zawya Dow Jones "we have no comment at this moment in time, all inquiries will have to go through the U.S. who will then let us know if we can talk to press or not."

Lehman is one of a number of U.S. investment banks including Merrill Lynch & Co. Inc. (MER), which is being sold to Bank of America Corp. (BAC), have expanded aggressively in the Persian Gulf in an effort to boost fees from the oil-rich region.

JoeFPM

a sad day indeed... Merryl Lynch and AIG are next

suomynona

Quote:

Originally Posted by JoeFPM

a sad day indeed... Merryl Lynch and AIG are next

Meryll was bought by BAC yesterday. They claim that they're buying them for 29 bucks a share but according to reports I'm reading, it might be with an equivalent BAC nb of shares at the time of the deal. Of course BAC shares will go down so MER investors will get less money than 29 a share.

Danny Z

Quote:

Originally Posted by suomynona

Meryll was bought by BAC yesterday. They claim that they're buying them for 29 bucks a share but according to reports I'm reading, it might be with an equivalent BAC nb of shares at the time of the deal. Of course BAC shares will go down so MER investors will get less money than 29 a share.

They are just lucky to have found someone who would give them something for their "shares" before lenders take full control of any assets left.

JoeFPM

the BAC and ML deal is not final yet.. it might be stopped soon.. however the risky one is still AIG that's where all the crying will happen

Ana

AIG has been rescued by the Fed for the time being, Goldman Sachs & Co + JPMorgan Chase will provide AIG with liquidity...

As for Lehman, part of it only will file for bankruptcy, many other subsidiaries of it will operate as normal.

Our COO & Senior MDs were running all over the place all day long to make sure our bank is covered.

Venom

A tough week for AIG....many analysts are predicting that it will file for bankruptcy!!!

sev

Jewish bank goes down

Henry Lehman - Wikipedia, the free encyclopedia

Henry Lehman (c.1821-1855) was a Jewish German-American businessman and the founder of Lehman Brothers.

Good bye! Now its AIG turn, American economy going down

Dry Ice

sev, you're aware that many world economies are affected?