Lehman Brothers Bank went bankrupt. After the news came out, the U.S. stock market fell even more sharply.
Previously, Lehman Brothers Bank filed for bankruptcy protection. This does not mean that Lehman Brothers Bank will definitely go bankrupt. Many companies that applied for bankruptcy protection completed reorganization or found new investors during the protection period, and thus did not actually go bankrupt.
But Lehman Brothers Bank is different. Although they are also working hard to reorganize, it is a pity that there are no new investors at all. Both Barclays and Bank of America had expressed interest in Lehman Brothers, but when negotiations began, it was discovered that it was not worth the investment.
With too much debt and too few high-quality assets, they cannot see the possibility of turning losses into profits in the short term, and may not even be able to turn around in three or four years.
Such a large investment is still needed in three or four years, and the risk is too high. Moreover, it spans two US administrations. Will the next president continue to implement the policies promised by George W. Bush
None of this was guaranteed, and it required them to come up with a lot of cash, especially since they didn't have enough cash, so they gave up.
Originally, the shareholders of Lehman Brothers Bank thought that the US government would come to help and take them over.
For example, Bear Stearns, and even Fannie and Freddie Group, haven’t the U.S. government taken over them? Why can’t they Lehman Brothers Bank
But to the extreme disappointment of investors, the U.S. government really didn't care about the life and death of this company, and watched helplessly as this once brilliant investment bank went bankrupt.
One is because the US government is really out of money and they cannot afford more pressure. They are also unwilling to let one Wall Street investment bank after another transfer business risks to the US government.
Saving Bear Stearns made the US government discover many problems. If they save Lehman Brothers Bank, will they take care of other investment banks that have filed for bankruptcy protection
If they all take over, the U.S. government will go bankrupt!
This morning, there was a very interesting scene at the door of Lehman Brothers Bank. It was not even working time yet, but many people poured into the building.
The difference between them and the usual ones is that they usually carry briefcases, laptops, etc., but this time, many of them carry a trolley suitcase, and each one is even bigger than the other.
Some people not only bring suitcases, but also empty backpacks, cardboard boxes, etc. What are they doing here, moving things.
The company went bankrupt and many of their employees' wages have not yet been settled. And after bankruptcy, they will leave the office. Everyone's office has more or less personal things of their own.
All the company's important documents have been taken away, and even the computers that record important information have been taken away. But there are many valuable things in the company, such as printers and so on.
These people are unemployed. From this day on, they will no longer be able to receive a penny of salary from Lehman Brothers Bank, and they will not even be able to receive the salary owed to them before.
Many people's frustration can be seen on their faces, and some even have anger on their faces.
But when they left the company, everyone's boxes were full of things. Even if they could get an extra pen at this time, it was an item that could be exchanged for money.
And no one took care of these illegal actions.
In the past, Lehman Brothers Bank had very good remuneration, and many of its managers were middle class. But like many middle class people, they want to live like rich people, retire early, and enjoy life.
Since they are all managers, they will naturally also make some investments. Investing in their own company's financial products is a good choice.
But when the company went bankrupt, their investments were really gone. The bonds in the hands of many of them were turned into pieces of waste paper, not to mention that many of the bonds themselves were purchased at a price higher than their own value.
And the company stocks they held also caused many people to lose everything. Some people even started crying the moment they walked out of the company.
They have lost hope in life, and some even feel despair. They have wives and children to support, loans to repay, and numerous living expenses, which cannot be met by simply saving money.
The government clearly took over Bear Stearns, Fannie and Freddie Group, and even facilitated the Bank of America's acquisition of Merrill Lynch, helping so many companies overcome difficulties. Why did they abandon Lehman Brothers when it came to them
Because of this, many people hold grudges against the U.S. Treasury Secretary and Bush, believing that their differential treatment led to their current situation.
During this period, it is very difficult for bank managers like them to find jobs, and so many banks are laying off employees on a large scale.
And they are different from those who were laid off. Those who were laid off still received a large amount of compensation, but they were not even paid a salary!
Wall Street's American financial dream is shattered, as are these unemployed people and many people who invested in these companies.
Whether you invest in the stocks of these companies, buy bonds, or other financial products, you are basically losing money.
These investment banks and fund companies with excellent innovative capabilities have all fallen into a quagmire and are unable to extricate themselves. On the contrary, the most traditional fund companies began to take advantage of the opportunity to make more profits.
For example, many fund companies specialize in investing in stocks, many fund companies specialize in investing in gold, and some specialize in investing in oil and other energy sources, etc. Although these companies have also lost a lot in the fluctuations of the financial market, they have timely reverse operations. Not only can you stop losses, but you can also make money.
This is also the reason why the ranking of fund companies in the United States and even the world has changed a lot since this year in the previous life. If you choose the right ones, they will all grow stronger. If you choose the wrong ones, some will lose a lot of money, and some will go bankrupt. Liquidated!
When Lehman Brothers officially went bankrupt and liquidated, the U.S. stock market began to fall even more crazily. The United States will no longer have any investment banks and Wall Street is finished. Such remarks are flooding the media.
Lehman Brothers Bank was abandoned by the US government, and some time ago Feng Yu asked someone to promote the US government's remarks that the US government had no money, which caused panic in the US stock market.
Many people began to sell stocks frantically, no matter how low the price was, as long as they could be sold. I have never seen so many listed companies suddenly go bankrupt and liquidated. At this time, creditors' rights take precedence, and their stocks are simply turned into waste paper and worthless.
Many people even say that as long as they can sell the stocks now, they will make a profit.
At this time, many fund companies also started the trend of short-selling the U.S. stock market. Regardless of whether the stock market crashed, they could make profits in their hands.
When the U.S. stock market experienced a cliff-like decline and seemed to be unstoppable, Christopher Cox, Chairman of the U.S. Securities and Exchange Commission, appeared.
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