American International Group Inc CEO Robert Willumstad turned down a private equity infusion and turned to the Federal Reserve for help, the Wall Street Journal, citing people familiar with the situation, reported Sunday.

WTF Did the private cash come with strings did they want to buy AIG or maybe just takeaway the corporate jets.
$40 billion bridge loan what kind of interest did AIG want pray tell?

If the US is asked by a board to buy out another one of these failed banks, why exactly couldn’t we make the deal contingent on taking back the ill-gotten fortunes of their big execs?

Because of the harsher treatment that federal bankruptcy law applies to financial-services firm, Lehman cannot hope to reorganize and survive as a going concern. It will instead liquidate its holdings…Moreover, changes to the bankruptcy code mean that counterparties to Lehman’s credit-default swaps can seize their collateral at any time, posing an enormous potential risk to the entire financial markets. Investment banks, hedge funds and other financial players labored throughout Sunday to offset their exposure to Lehman, moving their contracts to other firms.

Will the new bankruptcy law be changed quick in the taxpayers Banker’s hour of need? If that happens then yes the crisis is very bad about to get worse.
Thats a good angle Attaturk just how will the new harsher bankruptcy law effect everything?

I still want to know what ever happened to CEO’s having to swear that their financial reports were accurate and certified by accountants? I could have sworn hearing a few times this year that the financials were ok.

“The dollar will weaken on concern over the U.S. financial system and on the potential for an emergency rate cut tomorrow,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi Ltd. in London. “There is great deal of uncertainty on how this will affect the markets.”

The dollar declined to $1.4481, the lowest since Sept. 4, before trading at $1.4302 per euro at 8:30 a.m. in London, from $1.4224 in New York late last week. It touched $1.3882 on Sept. 11, the strongest since Sept. 18, 2007. The U.S. currency dropped 2.2 percent to 105.62 yen. It earlier reached 105.27 yen, the lowest since July 17.

http://www.bloomberg.com/apps/…..efer=japan

Emergency Rate Cut just like I said last thread Things are getting Panicky.

I’m with you, TCU – can we just tax the rich already?

Discussions
Re: How many people are selling on Pre-market and what price to expect.
la_i..@yahoo.com – 1 minute ago (17 posts)
Question can’t be answered…too much insider market …
LEH trading at 70c . Can we still short since they already filed bankruptcy
cool_n..@yahoo.com – 10 minutes ago (1 post)
LEH trading at 70c . Can we still short since they already filed …
Re: Can it still be sold off ?
la_i..@yahoo.com – 14 minutes ago (3 posts)
So, let’s see how they can manipulate the Common Share Holders …

http://finance.google.com/finance?q=NYSE:LEH

These kind of discussions are not what you want to see at one of Americas’s biggest financial companie’s Google finance page.

Good morning Attaturk and thanks for the post.

From your NY Times link;

K.K.R. and TPG had said they would invest only if the Fed provided a backstop to any investment they made.

I want to make sure I get this straight. Our titans of capitalism will only help clean up the shit storm they created if We The People promise to guarantee their money? Are you f*cking kidding me….. Oh, they prolly just left out the part where K.K.R. said they would be sending me a regular dividend check.

This would be funny if it didn’t involve, ya know, like the collapse of our economy. I only wish more voters understood what is really happening.

We are going to have to tax the rich, the middle class is up to their eyeballs in debt its either that or we let the Dollar drop like Mexico let the Peso do in the 70’s?
Which would protect the rich invested anywhere but America but it would lower our standard of living.
I know what I would do, I also think I know what Bush will do.
This is not good.

since the collapse of Drexel Burnham Lambert 18 years ago…
Drexel was junk bond supplier for the “Keating 5″ Lincoln savings that bilked seniors out of their retirement funds. Michael Milkin, went to federal penetentiary in Lompoc Ca and had to pay penalties.

John McCain was part of the Keating 5.

http://www.azcentral.com/news/…..pter7.html

Do you want this man for President America?????

Normally the Lehman site is dead this time of night. The last time a site surprised me with all its early morning lurkers was when Karl Rove left the White House and suddenly everybody was at the Lake.

Look at it from another view Bush is doing more to Socialize American business by buying their debts than anybody since FDR.
I assume that Bush and the companies have no intention of paying those debts but a bad economy may force a future president desperate for cash to insist on repayment:)
John McCain with his plan to keep troops in Iraq is more likely to need that money to keep his Iraq war going than Obama.
Oh and I do believe that Government loans comes before stockholder cash as far as repayment goes so the Bushies lose everything.

Holy shit! The always on top of it folks at CalculatedRISK can’t even keep up.

So McInsane went to the FDIC and S&L regulators to get Keating a break for risking seniors life savings on a promise of great profits through junk bonds that Micheal Milkin was producing for Drexwl before they were shut down! Keating did less than a year of soft time!
And now, the tab for the Savings and Loan heist must be paid from taxpayer pockets.

McCain not only is a crook he ratted out his colleagues to save his owm ass! Pass the vomit bag.

for 14

And now, the tab for the Savings and Loan heist must be paid from taxpayer pockets.

Lehman Brothers appears to be attempting to put lipstick on the pig with a Chapter 11 filing that includes only the parent, Lehman Brothers Holdings, LLC and excludes all subsidiaries. Unclear what a reorganization would accomplish but it looks to me like a naked effort to hide from creditors while isolating from the court the only real assets they have. I can’t imagine it will fly.

The post at Calculated Risk went up at 12:57 as of 2:32 in the morning 190 comments Hmmm…1hr 35 minutes 190 comments at this time of night not bad!

Maybe Obama needs to do a history repeating itself commercial firt with a picture of McCain and the Keating 5 followed by a picture of McCain’s son and his bank closing.
How come politician’s sons get jobs at banks or oil companies like McCain’s son or G.W Bush did with very little experience and to do very little work at high pay?
Isn’t that just a bribe then to their parents or is it babysitting?

our politicians have NOT been blaming these failures on the perverse bush/reagam/friedman policies and they MUST

Actually, having read the report, McCain doesn’t really come out as badly as might be implied, and clearly had some ethical concerns. Wonder about the temper though.

Back to today, after this massive foul up of big capitalism under a very right wing Government, with all the personal tragedies it’s going to create, here in the UK as well as in the US by the way, if Obama cannot win this time then the US is lost to reality. Remember “It’s the economy, stupid”?.

Having said that I am not sure if Obama should want to be the president presiding over this chaos.

Chances are they won’t have a choice this is getting to big to stop and every few months it flares up again since I think last year.
The crisis is not contained the financial companies stock prices can’t go much lower without starting to go into negative numbers.

Actually, a stock that trades at .70 a share will be de-listed.

[Edited by Moderator: Please take care when re-quoting long email strings, thanks]

America got to deverse,To many imigrants, ran this county down the
tubes.

Reply

United States were build on imigrants, get your history straight.

Reply

Isn’t that what the Germans said about the Jews when their economy
failed after loosing WW1?

Reply
How are your average migrants relevant to this lol. This is the big
bankers and loose monetary policy. These are the guys who get paid 10
figure sums because they do “such a good job”.

Reply
http://finance.google.com/grou…..7ad5407506

Lehman is going under some GOP troll tries to stir up the hate but even Bush’s base is not buying it. Somedays just renew your faith in humanity:)

I though it was less than a $1 thats good to know thanks!

A team of forensic auditors is called for as the shitpile has Racketeer Influenced and Corrupt Organizations Act written all over it. Who are these criminal that have colluded against the America homeowners and American taxpayers? The Mortgage Banks, the Savings and Loans, the apprasers, the investment banks and the regulators all were partnering.
Jail not Bail as in bailouts. These…..ripped us a new one.
Bushco was waging war in the middle east and raping American citizens. Murdering innocents in the name of god and country.
We need forensic accountants (professional)to be at every table as to where the payj of transactions and who did this to us. Names dates and addresses.

I wonder if this paul guy is part of the McCain troll squad? Have the McCain trolls done anything or are they just a GOP fantasy of popularity like Hitler ordering imaginary German divisions to attack from his bunker?

Was Carol Lam Targeting The White House Prior To Her Firing?»
Foggo…Lewis what other Republicans was she investigating? Lam an ex judge was not corruptable. Rove had her axed by Gonzo. When the dam breaks scandalgate will roar down the halls of justice.
Does someone recall the indictment of some Wamu property appraiser in Southern California?

It is less than a buck. .70 is what the NYT article said was the current trading value.

You can freeze the assets of the accused with RICO right? I wonder how long McCain can hold out wearing Nikes instead of his Bruno Magli shoes?
I wonder how long the other members of the Bush family Jeb, Neil etc can wait without the Bush Family trust fund?
Bush as an ex Prsident gets top secret briefings I believe if he wants, want to bet the Carlyle Group got intel from him on which military companies were going to get the contract?
I think just getting top secret clearence means that you have to take lie detector tests Bush 1 should worry then.

Nite folks I want to get up in time to see Helicopter Ben squirm on TV.

Is everyone on the take in politics? Forget about it.

some like it hot and some sweat when the heat is on
some feel the heat and decide that they can’t go on
some like it hot but you cant tell how hot ’till you try
some like it hot so let’s turn up the heat ’till we fry

Great post Attaturk!

[but I think the name is Schuyler Colfax, veep under US Grant, and possibly one of the worst veeps in U.S. history. I went to Schuyler-Colfax Junior High School, named for two prominent families in the town]

work for peace, every day

I am waiting for one of the administration bozos to suggest using the Social Security monies to bail out the banking/investment/bushpiggybank sector and then they will get their greatest wish, a bolixed SS system. This whole “bail out”intentional collapse business will only stop when bushco has taken every available piece of public money, borrowed the next ten years treasury and doomed the non-rich to penury for the foreseeable future. How come it is the bushies in charge when the whole financial systems go to hell in a hand basket?

Right you are. I spent so much time making sure the first half of the name was right, I screwed the pooch on the last syllable.

I expect Wall St to halt trading about 3 minutes into today’s session after this mess in Europe

In Europe, the Dow Jones Stoxx 600 Index declined 3.4 percent to 270.81 points, while the FTSE fell 3.8 percent and the CAC-40 in Paris lost 4.1 percent. Stock markets in Japan, South Korea, Hong Kong and China were closed for holidays, tempering losses in Asia although other markets there declined. The benchmark Taiwan index shed 4.1 percent.

Why do I get the feeling if McCain & Pom Pom get in the White House the price of beer is going to skyrocket.

Hey, when we had 2 oil maggots in the White House look what happened to the price of oil!

Oh boy. There’s going to be lots of upset people when beer goes up to $20 for a 6-pack.

Why do I get the feeling if McCain & Pom Pom get in the White House the price of beer is going to skyrocket.

I have always wondered why beer is cheaper then soda

it’s disturbing these people don’t go public when it happens to insure the investigation goes forward

Time to put out an all points bulletin for Phil and Wendi Gramm.
The Bonnie and Clyde of the 21st century.
Except that Warren Beatty and Faye Dunaway looked a hell of a lot better.

And throw in their sidekick, Christopher Cox.

Good morning, pups. It’s [sigh] Kristol, Cohen and Krugman today. Billy “just call me a moron” Kristol excreted a thing called “Both Sides Now.” He says it’s past time for such an antiestablishment awakening. If it goes too far, though, he of course reserves the right to become an antidisestablishmentarian again. Asshole. Oh, and in keeping with the Republican tradition of not caring much for copyrights, he made no mention of stealing Joni Mitchell’s title. Mr. Cohen says we must “Premiumize or Perish,” and that in today’s world, your identity is defined less by what you think than by what you buy, even in a recession. He’s not usually full of crap, but this thing is. Mr. Krugman writes about “Financial Russian Roulette,” and says if institutions need to be rescued like banks, they should be regulated like banks — why were we so unprepared for this latest shock?

http://mgpaquin.wordpress.com/

The coffee and tea are ready, and the biscuits are out of the oven. I’ll be lurking around today because I’m staying home with what can most politely be termed “intestinal issues.” I hope y’all have a more comfy day than I’ve started out with.

(((Marion)))
hope you have some ginger, must be a reaction to reading Kristol

So the banksters will now fall victim to the very same onerous BK laws that they compelled their bribed and blackmailed Congressmen to pass at the height of the bubble. We can only hope that some of the highest level rat bastard executives and board Members will face personal bankruptcy to see exactly how it feels here in the real world.

How sweet it is that Jeb Bush works for Lehman.

Got Karma, Jeb?

Corzine’s on CNBC talking about the SEC’s abrogation of its duties in enforcing what regulations do exists. Hekuva job.

Lehman hires Jeb Bush as private equity advisor

August 30, 2007

NEW YORK, Aug 30 (Reuters) – Lehman Brothers has hired Jeb Bush, brother of the President of the United States, as an advisor to its private equity business, a source familiar with the situation said.

Lehman hired another relative of U.S. President George W. Bush last year–George Walker, a second cousin, who heads up the bank’s asset management business.

George Walker, President Bush’s second cousin, headed up the bank’s asset management division?

Gee, you think that might have been the problem?

SEC = private entity – owned and controlled by the banksters – same as the FED and the IRS – and CONGRESS.

I’ve always got ginger ale and/or fresh ginger in the house, thank heaven. I think it was the combination of Kristol and Cohen being a schmuck as well. The comments on their columns are, for the most part, utterly scathing.

ahh, they probably have all sorts of assets hidden all over the place, I can’t believe they’ll actually suffer; but it sure would be nice if they did pay the piper for the tune they’ve been dancin’ to.

oo it would be cheering then to read the comments *g*

HOLY CRAP…that SHOULD blow everything through the ROOF, how many financial institutions is this family going to destroy?

Corzine gratiously did not point that out, but his criticism was pretty harsh.

obama needs to start spending his money NOW

the fire is hot and the irons are in the fire, HE MUST POUND the administration and the mccain financial doctrine along with mccains financial lobbiests that caused this problem

NOW IS THE TIME TO SPEND THAT MONEY, I do NOT want to see obama with ONE PENNY left over after this election, NOT like kerry, I WANT IT ALL INVESTED IN THIS ELECTION

this is getting SO bad, they are taking their money now, they are going to “blame the times” instead of the policy, obama MUST tie “the times” TO the policy and these depraved politicians

he MUST point out that these problems ARE CAUSED by “dergulation”, and THAT IS THE PURPOSE OF GOVERNMENT

man, he needs to get afoot fast

As many as they can as long as they can steal the money

Marvin P. Bush, the president’s younger brother, was a principal in a company called Securacom that provided security for the World Trade Center, United Airlines, and Dulles International Airport. The company, Burns noted, was backed by KuwAm, a Kuwaiti-American investment firm on whose board Marvin Burns also served.

On the weekend of 9/8, 9/9 there was a ‘power down’ condition in WTC tower 2, the south tower. This power down condition meant there was no electrical supply for approx 36 hrs from floor 50 up… “Of course without power there were no security cameras, no security locks on doors and many, many ‘engineers’ coming in and out of the tower.”

President Bush’s cousin should have been in the World Trade Centre when it was attacked. Jim Pierce, managing director of AON Corporations, had arranged a business conference on the 105th floor of the South Tower where its New York offices were based. But his group was too large so they decided to move across the street to the Millennium Hotel.

The nexus between disaster and the Bush family is not difficult to unearth…if anyone actually wants to know the entire truth.

The first 2 comments for Kristol:

Bill, the reason that all those establishments are upset is that Palin represents basically the same establishment that even you recognize has been a trainwreck.

— Jim Bradley, Ottawa, On

and #2:

What about the republican establishment? This Mc-Cain Palin shtick is really a continuation of the Republican party establishment and its culture-wars politics.
Mr Kristol seems blissfully unaware of this obvious point.

— Luka, Portland, OR

It does bring a smile to one’s face…!

Ohio secretary of state on WJ now talking about caging and the Repub snafu

yes it does :)
lolol

Have you ever had any Blenheim Ginger Ale? Made in SC near the NC line; comes in diet, mod. hot, and hot versions. Not readily available but try a google to see if any retail sources near you. Goooooooooood stuff. :-)

Hope the tummy feels better soon.

the fire is hot and the irons are in the fire, HE MUST POUND the administration and the mccain financial doctrine along with mccains financial lobbiests that caused this problem

Agreed.

Mornin’ all.

Alabama Sec’tyof Ststae (R) claiming they’ve seen a lot of voter fraud
- yep by the Republican party.

G’MORNING JAYT!

man, things are getting bad, the jig is up and these guys have to take while the taking is good

I dread what happens next but it ain’t gonna be pretty

now come on, voter fraud?

by the republikkkan party?

I just don’t believe it

Among AIG’s challenges are lack of access to the Fed’s lending window; the possibility of big claims related to Hurricane Ike

When AIG goes tits-up, how many who thought they were insured will find they are not? The knock-on effect downstream will further destroy the real estate market.

Thank your Congress, who allowed the insurance industry to destroy the health care delivery system, and NEVER suffer a loss – despite being in the “risk business.”

If insurers can’t be trusted to remain solvent, the end of trust has arrived…therefore the end of fiat money.

JoeScar report:

Mrs. Greenspan notes that neither campaign “has any better ideas” re the issues and factors (like her husband, for example), that are at fault for the financial meltdown. But hey, she did show her face this morning, fwiw.

Pat Buchanadana is scared about *his* money, muttering on-air that he’s got some serious money in Merril-Lynch.

Last but not least, new Obama ad being shown which is a full-blown kick in the mouth to McCrazy.

and until they are brought to justice…this is what the family does and it will continue, I guarantee there will be another bush in politics and that bush will forward the same depravity as these

they have been denying claims they once happily paid and this is certainly an indication they are not happy with their cusion

man, our economy is collapsing

I want our money back.

looks like BT’s swimming

yup, I want my kids money back to, and their kids

this is pretty simple for a politician to pull off too, all they have to do and say is the following;

“contrary to corporate propaganda, reagan did NOT lower taxes he raised them

and worse then that, he took middle class assets and put those assets in the pockets of the top few percent.

then that top few percent took those assets and transported them overseas.

we intend on LOWERING taxes BACK TO THE RATES BEFORE REAGAN RAISED THEM

we ALSO intend on reclaiming the middle class assets that were misapropriated, we plan on REBUILDING our infrastructure instead of causing the collapse the reagan/bush/friedman/mccain policies caused

WE WILL REBUILD THE MIDDLE CLASS and we will rebuild america, we will make PUNISH industry who exports jobs instead of reward them as the bush/mccain polices do

industry will NOT be allowed to defer THEIR expenses on to the rest of us, they WILL pay their bills and laborers WILL have for their familyhealth care, healthy food on the table and education for their kids

WE WILL REVERSE THE DAMAGE DONE BY THIS ADMINISTRATION AND THE REPUBLICAN FINANCIAL THEFT OF MIDDLE CLASS ASSETS

there, I give the obama camp permision to use my speach

off for a long drive, see all later

If AIG goes away, does Warren Buffett’s insurance business benefit?

If Bear, Lehman and Merrill go away, does David Rockefeller (JP Morgan Chase & Goldman) benefit?

Cui Bono? Are we to assume these are coincidences?

What was Warren Buffet doing at Offutt Air Force Base on 9/11? Why did he insist that Ann Tatlock meet him there rather than remain in her office in the WTC that morning?

Bush flew to Offutt on 9/11. The huge white airplane seen over the White House on 9/11 originated from and returned to Offutt on 9/11.

http://killtown.911review.org/buffett.html

All just coincidences, right?

PRat Buchanadana is scared about *his* money, muttering on-air that he’s got some serious money in Merril-Lynch

Fixed it for you. Cry me a river. *g*

73’s for you.

Keep it in the fairway

Another Firedog making waves.

“Another valley activist, Philip Munger, says that Palin also helped push the evangelical drive to take over the Mat-Su Borough school board. “She wanted to get people who believed in creationism on the board,” said Munger, a music composer and teacher. “I bumped into her once after my band played at a graduation ceremony at the Assembly of God. I said, ‘Sarah, how can you believe in creationism — your father’s a science teacher.’ And she said, ‘We don’t have to agree on everything.’

“I pushed her on the earth’s creation, whether it was really less than 7,000 years old and whether dinosaurs and humans walked the earth at the same time. And she said yes, she’d seen images somewhere of dinosaur fossils with human footprints in them.”

More in Salon…

I know everyone is sick of talking about her. I was trying to give the shout out to Phillip.

A few thoughts–

Who wanted to take Social Security and give it to Wall St. because he had so much “political capital” after being “re-elected” in 2004?

As for this long overdue “market correction” I surely do not enjoy seeing it happen yet one just knows that Wall St. has been running the red lights on too many “funny money” schemes and gamings far too long.

In view of how the top ten percent of Americans have been walking off with bulk of the economic income loot for past ten years perhaps this “market correction” will set things into better perspective for this group.

Odd how this bunch always wants “less government/low/no taxes” until they need help then the tune changes.

As for American real estate and housing on which much of this Wall St. house of cards was constructed could we please take this idea of it all being about money and profits out once and for all time.

I have a friend who now makes all of about $7.65 an hour and works every day trying to hold on to a house that likely will be lost. I would like to see these Wall St. guys try to make a go of it on $7.65 an hour.

Houses are homes for people. Should not be fodder for Ponzi schemes coming out of Wall St.

Do not ever let Wall St. get control of Social Security Funds.

The S&L debt came as a result of Bush Sr’s wonderful stewardship of the economy when he tried to give his friend’s as much money as he could through the Resolution Trust Corporation.

All of this is a result of the deregulation that started under Carter, found its fullest expression under Reagan, and had the frosting spread on top when Clinton went along with the repeal of Glass-Steagall.

While the GOP nut jobs like to paint FDR as a socialist he was only acting as a member of the capitalist class desperate to save capitalism. At the time he took office, there were strikes going on throughout the country, socialism was openly talked about, and the working class was facing starvation along with Pinkertons (think Blackwater) who were sent in along with police to split heads during labor unrest.

They don’t care about us, they never have. If they won’t save Lehman Brothers do you think they’ll save ANY of the middle class families who are on the brink right now? The bridge loan for AIG was meant to service its debt, that’s all. Debt principal doesn’t need to get paid off, in fact, it’s better if it isn’t because outstanding loans are carried on banks’ books as assets. It’s the interest that needs to be serviced. That’s why whenever there’s a problem with some foreign country, the debt is rescheduled and the interest payments continue. It’s always the interest payments that count which is why so little of your mortgage payment goes to principal or your credit card payments.

Yeah, let’s make those tax cuts permanent, they sure have served as an engine of growth, haven’t they?

From under which rock are you getting your history? This one …

All of this is a result of the deregulation that started under Carter Nixon, found its fullest expression under Reagan, and had the frosting spread on top when Clinton went along with the repeal of Glass-Steagall.

is now fixed. Please throw out whatever manuscript you have that is providing you with shite history.

Please note, most of what you are on about is mere opinion, you are welcome to it, for that, I just consider the source and disregard.

what “deregulates” and proponents of same refuse to understand;

regulations for the most part did NOT arise from whole cloth, they were written because industry created issues they refused to resolve or pay for without that regulation

auto makers were dumping their bronchitis in my kids air and chemical companies were dumping their cancer in my moms water

they refuse to clean up their crap and bing, we force them with regulation

they refused to make energy efficient cars and we are at security risk so bing, regulation, they refuse to have safe working conditions, people were dying, they refuse to clean up their shops, bing, regulation, they refuse to consider the water tables while they shred mountain tops for a few lbs of coal and profit, bing, regulation

in ALMOST EVERY CASE, the regulation gives us POSITIVE return NOT negative, there is a RARE condition where the regulation is counter productive or has become counter productive, THAT IS RARE

you DO NOT “eliminate” regulations that might be counter productive, you revisit them, you correct the problem, you insure industry pays their own bill without getting us to pay it for them

you make the regulations as benign as possible but it MUST be effective, otherwise industry will find loop holes and continue to steal from the rest of us