Deleveraging, now only in early stages, will transform the banking industry

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Deleveraging, now only in early stages, will transform the banking industry

Post by yunowu on Thu Jun 26, 2008 8:58 pm

The process of taking leverage out of the financial
system, only now in its early stages, will put an increasing drag on
economic growth and corporate profits. Deleveraging - cutting back on
the amount borrowed as compared to equity - is the dominant theme in markets and economics in 2008, as the financial system recoils from the massive losses in structured finance and the housing bubble. Those losses - which are still mounting and being recognized - have piled up faster than banks can raise...
http://www.iht.com/articles/2008/06/26/business/col27.php

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Big Brokers Threatened By Crackdown On Shadow Banking System

Post by yunowu on Thu Jun 26, 2008 9:01 pm

June 19, 2008 Thursday 6:29 PM EST

SAN FRANCISCO (MarketWatch) -- A
network of lenders, brokers and opaque financing vehicles outside
traditional banking that ballooned during the bull market now is under
siege as regulators threaten a crackdown on the so-called shadow
banking system.

Big brokerage firms like Goldman Sachs (GS) ,
Lehman Brothers (LEH) , Morgan Stanley (MS) and Merrill Lynch (MER) ,
which some say are the biggest players in this non-bank financial
network, may have the most to lose from stricter regulation....

http://www.insurancenewsnet.com/article.asp?n=1&innID=809869609

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Lehman posts loss and plans to raise fresh capital

Post by yunowu on Thu Jun 26, 2008 9:03 pm

Lehman Brothers, seeking to allay concern that it might become the next Wall Street bank to founder, said Monday that it would raise $6 billion to shore up its weakened finances. The move came as the investment bank stunned Wall Street with news
that it had lost $2.8 billion in the second quarter, its first loss
since going public in 1994. The deficit far exceeded even the most
pessimistic forecasts and reflected a triple blow of soured assets, bad trades, and hedges that were supposed to...

http://www.iht.com/articles/2008/06/10/business/10lehman.php

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Rethinking money market funds

Post by yunowu on Fri Jul 11, 2008 11:01 pm

Published: July 11, 2008
A money market fund is usually considered one the safest places to put cash. But lately such funds have become surprisingly dangerous not for investors, but for the financial companies that run them.
During the last year, big banks and investment companies have committed more than $10 billion to shore up money market funds that were tainted by the mortgage mess...
http://www.iht.com/articles/2008/07/11/business/11fund.php

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Defaults in Las Vegas turn investment banks into decorators

Post by yunowu on Fri Jul 11, 2008 11:06 pm

Published: June 23, 2008
NEW YORK: Workers building the $3.5 billion Cosmopolitan Resort & Casino on the Las Vegas Strip are getting used to the financiers of the project, from Deutsche Bank. Lately, their weekly visitors from Wall Street have been critiquing plans that called for a black-and-white decor.
"They are considering changing the color palettes and finishes," said Travis Burton, a vice president for the lead contractor, Perini, who outfits the bankers with safety vests and hard hats before touring the site....
http://www.iht.com/articles/2008/06/23/business/deutsche.php

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Re: Deleveraging, now only in early stages, will transform the banking industry

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