Wamu, Lehman Brothers, Bankruptcy Chapter 11 and You
Advertisements:Who would have thought when Lehman, Mayer and Henry, Emanuel first founded the Firm in Montgomery, Alabama in 1850? Today after 158 years, Lehman Bothers is wobbling on the brink of bankruptcy. In 1858, the Lehmans accepted cotton crops from the local farmers as currency to settle accounts. But not anymore, they are running out of cash and difficult to float as global financial-services firm.
In such financial turmoil, the question becomes: what does this mean for you?
It’s difficult to predict the ripple effect of Lehman’s bankruptcy in financial world but one thing is clear that bank is loosing their ability to borrow credit at their end and that’s why banks will be less able to lend on your end. Home loans, car loans, credit cards and other credit products American consumers use and rely on will be impacted and will not be easy to borrow without intense scrutiny. How and when? Just time can tell.
So Who is next in a queue? Wamu? AIG?
Update (Sept 23, 2008): The FBI is investigating four financial institutions for possible mortgage fraud- Fannie Mae, Freddie Mac, Lehman Brothers, and AIG. Collapse of these banks triggered $700 billion bailout plan by the Bush administration. Finally government came out of hibernate and started some action to go after top heads of these banks/institutions. So who is next? Any politicians? I doubt it 
Reference here
Bank Bailout
via [prairiefirejournal.com and cartoon from: institutionaladvisors.com]
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