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Lehman selling $852 million leveraged loans
 

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(Adds new U.S. jobs data, comment from NY governor)

By Jonathan Spicer

NEW YORK, Sept 15 (Reuters) - The imminent disappearance of major investment banks Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) and Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz) presents a double-barreled hit to an already wounded job market and will likely depress salaries on Wall Street.

Lehman filed for bankruptcy protection after frantic attempts to find a rescuer failed on Sunday, while Merrill Lynch agreed to be taken over by Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz).

Headhunters and consultants said the U.S. financial services sector, already suffering from a glut of unemployed talent after shedding more than 100,000 jobs this year, must now brace for up to 50,000 more job losses.

"The resume flow will start on Monday like there's no tomorrow," said Michael Karp, chief executive at executive search and consulting firm Options Group in New York.

"This is seriously going to impact compensation this year, across the Street and all over the world as well," he said.

"The golden years of compensation in the financial services industry are over, and it doesn't help with the Bear Stearns people still looking for work." Bear Stearns agreed in March to a takeover by JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz).

Bank of America, the second-largest U.S. bank, agreed to buy Merrill in an all-stock deal worth $50 billion, as the world's largest retail brokerage sought refuge from fears that it could be the next victim. [ID:nN15353675] Continued...
 

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WASHINGTON -

Treasury Secretary Henry Paulson said Monday the American people can remain confident in the "soundness and resilience in the American financial system."

Briefing reporters at the White House, Paulson said he "never once" considered it would be appropriate to put taxpayer money at risk to resolve the problems at Lehman Brothers (nyse: LEH - news - people ). The nation's fourth largest investment bank filed for bankruptcy protection earlier Monday.

Starting Friday, Paulson participated in three tense days of negotiations at the New York Federal Reserve Bank in which he held firm to the position that the federal government would not step in and supply any money to resolve the crisis at Lehman.

Faced with the prospect of no government help in dealing with Lehman's huge losses on its mortgage holdings, other financial firms lost interest in trying to buy the venerable firm. That forced New York-based Lehman to file for bankruptcy protection, making it the largest bankruptcy in history in terms of assets, surpassing the failures at Worldcom and Enron earlier in the decade.

Paulson explained his decision by telling White House reporters that any decision to put taxpayer money at risk to prop up a private company must be undertaken only after considering all alternatives.

"Moral hazard is something I don't take lightly," Paulson said, referring to the belief that when the government steps in to rescue a private financial firm it encourages other firms to engage in risky behavior.

"I never once considered that it was appropriate to put taxpayer money on the line in resolving Lehman Brothers," Paulson said.

The current credit crisis will not be resolved until the prolonged slump in housing comes to an end, he said.

"Until we stem the housing correction, until the biggest part of that is behind us and we have more stability in housing prices, we're going to continue to have turmoil in financial markets," Paulson said.

Paulson, who was heavily involved in the decision last week for the government to take control of mortgage finance giants Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ), said if that action works as expected in helping to stabilize the mortgage markets, then housing should start to rebound.
 

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NEW YORK (Reuters) - Lehman Brothers Holdings Inc filed for bankruptcy after trying to finance too many risky assets with too little capital, becoming the largest and highest-profile casualty of the global credit crisis.

Based on assets, Lehman far surpassed WorldCom as the largest U.S. bankruptcy ever. Lehman had assets of $639 billion at the end of May, while WorldCom had $107 billion when it filed for bankruptcy protection in 2002.

The Chapter 11 filing did not include Lehman's broker-dealer operations and other units, such as asset management firm Neuberger Berman. Those businesses will continue to operate, although Lehman is expected to liquidate them. Lehman said it is in advanced talks on selling its investment management division.

Lehman is the biggest investment bank to collapse since 1990, when Drexel Burnham Lambert filed for bankruptcy amid a collapse in the junk bond market.

Time is of the essence as Lehman sells assets. Customers are often reluctant to trade with dealers whose parent companies are in bankruptcy, so the longer Lehman waits to sell its broker-dealer unit, for example, the less that unit will be worth.

"Much of (Lehman's) asset value at the end of the day is tied up in its credibility, and that takes a significant hit early in a bankruptcy case," said Jack Williams, resident scholar at the American Bankruptcy Institute and a professor at Georgia State College of Law.

The bankruptcy filing represents the end of a 158-year-old company that survived world wars, the Asian financial crisis and the collapse of hedge fund Long-Term Capital Management, but not the global credit crunch.

Financial institutions globally have recorded more than $500 billion of write-downs and credit losses as the U.S. subprime mortgage crisis has spread to other markets. Continued...
 

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Why they let Lehman die
Six months ago the Fed put up $29 billion to help keep Bear Stearns out of bankruptcy. On Sunday the government said no to similar help for buyers looking at Lehman. Here's why
.


NEW YORK (CNNMoney.com) -- When Lehman Brothers filed for bankruptcy on Monday, the government essentially sat on the sideline. Six months ago, when Bear Stearns faced a similar fate, the Federal Reserve intervened with the Treasury Department's support.

Why did Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson change their tune?

Experts say the Fed's lack of action on Lehman wasn't as much a change in thinking as it was a change in circumstance. They say simply that the firms were very different - that Bear posed a greater risk - and that regulators were better prepared this time to deal with the consequences of a failure.

"The system wasn't ready for Bear to fail in March," said Jaret Seiberg, financial services analyst for policy research firm Stanford Group. "It couldn't have been unwound in an orderly fashion."

In the case of Bear Stearns, the Fed engineered a bargain-basement sale of the firm by JPMorgan Chase (JPM, Fortune 500) by agreeing to assume $29 billion of the risk of losses from Bear Stearns going forward.

But when other banks considering a purchase of Lehman (LEH, Fortune 500) over the weekend sought the same kind of assurances from the Fed, they were turned down. Without a buyer, Lehman had little choice but Monday's bankruptcy filing that is expected to lead to its liquidation.

Seiberg said a Bear Stearns bankruptcy would have prompted a massive sell-off and hit the financial sector much harder than the Lehman bankruptcy did on Monday. The Dow Jones industrial average dropped more than 400 points at its low Monday - a rough day but not as bad as many feared. Seiberg said that steps taken by the Fed to make more money available to Wall Street and banks since March means that "the market doesn't have the same liquidity fears about Lehman failing as it did about Bear."

Barry Ritholtz, CEO of Fusion IQ, said that Bear Stearns' holdings also posed a greater risk to the nation's financial institution than did Lehman's. He said Bear Stearns had $9 trillion worth of financial instruments known as derivatives, much of it shared with other financial institutions such as its eventual buyer, JPMorgan Chase. He said Lehman had about a tenth that much exposure.

"Lehman was only incompetent enough to blow up and destroy themselves, where as Bear's degree of incompetence was enough to threaten the entire financial system," Ritholtz said.

There is also a sense that investors, financial regulators and Wall Street firms have a better handle on the problems in the financial markets than they did six months ago. The fact that Bear Stearns took place when there was so much more uncertainty is also a reason the Fed kept it out of bankruptcy then, but didn't step in to help Lehman now.

"We didn't know what we didn't know in March," said Art Hogan, chief market analyst at Jefferies & Co. "We know much more now."

And there is also the widespread belief that the Fed felt it needed to take a stand and not become the first and primary source of funds for every purchase of a troubled financial firm.

"The Fed did not want to be in the position of having to save everybody," said David Wyss, chief economist with Standard & Poor's.

But experts said it's certain that the recent upheaval - the Lehman bankruptcy and the seizure of mortgage lending giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) by the Treasury Department - will cause more losses going forward.

"There's a possibility that this unwinds in a much more messy fashion than we're seeing right now," said Hogan. He wouldn't rule out the aftershocks of Lehman even causing a failure of another major firm.

"It's too soon to say nothing has bad happened because of Lehman," he said. "I don't think we'll know in six days or six weeks. We'll know a lot more in six months than we know right now."

And that uncertainty about the challenges that lie ahead is another reason that the Fed and the Treasury Department didn't want to rush in to keep Lehman out of bankruptcy - the realization that there could well be bigger and more expensive challenges ahead.

"There was a lot of negative pressure about all these bailouts," said Bob Andres, chief investment strategist for PMC. "They have to use the money they have judiciously." To top of page
 

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NEW YORK, Sept 15 (Reuters) - Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) will likely sell some of its units "very soon," a source close to the transaction said on Monday.

There are "likely candidates" to buy the financial firm's broker-dealer unit, while the investment management division received bids before the company filed for Chapter 11 bankruptcy protection, said the source, who is familiar with the situation.

No official layoff announcements have been made at the company and the broker-dealer operations are operating on a "business as usual" basis, said the source, who declined to be identified more specifically.

Lehman Brothers Holdings is working to put together bankruptcy financing, though the form that financing might take is not "clear" yet, said the source.

The financial firm filed for bankruptcy early on Monday. The filing did not include Lehman's broker-dealer operations and other units, such as asset management firm Neuberger Berman. (Reporting by Chelsea Emery; Editing by Brian Moss)
 

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Sept. 15 (Bloomberg) -- Lehman Brothers Holdings Inc. is trying to sell $852 million of high-yield, high-risk loans, signaling it's dumping some assets after filing for bankruptcy, according to people familiar with the sale.

Bids for the loans, some of which helped finance leveraged buyouts for First Data Corp. and TXU Corp., are due by 2 p.m. tomorrow in New York, said the people, who declined to be identified because terms are private.

Lehman, once the fourth-biggest U.S. investment bank, is selling loans as prices near record lows. New York-based Lehman, which failed to find a buyer as its share price tumbled, has $7.1 billion of high-yield loans and bonds on its books, the bank said Sept. 10.

The price of the average actively traded leveraged loan has fallen from above face value in June 2007 to 86.64 cents on the dollar, compared with a low of 86.3 cents reached in February, according to Standard & Poor's LCD, which earlier reported the loan auction. Prices fell 1.64 cent in the past week.
 

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SINGAPORE, Sept 16 (Reuters) - DBS Group (DBSM.SI: Quote, Profile, Research, Stock Buzz), Southeast Asia's largest bank, said late on Monday its direct exposure to Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) is insignificant, but its customers may be affected through its sale of financial products.

"Some investment products DBS sold in the past have Lehman exposure. However the global economic situation has changed dramatically and this has impacted the value of these investments," DBS said in a statement.

"Our priority now is to ensure that our customers are well-informed of the latest market developments," it said.

United Overseas Bank (UOBH.SI: Quote, Profile, Research, Stock Buzz), Singapore's No. 2 lender, said on Monday it has a very small exposure to Lehman, while Singapore's central bank said the city-state's money and financial markets were still functioning in an orderly fashion after the U.S. investment bank's collapse. (Reporting by Daryl Loo; Editing by Anshuman Daga)
 

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تدعيات انهيار «ليمان برذر» الأمريكي



إفلاس "ليمان برذر" رابع أكبر استثماري أمريكي خبر نزل كالصاعقة على الأسواق المالية والبورصات العالمية ، ورافق هذا الخبر بيع بنك ميريل لنش المتعثر خامس أكبر استثماري في أمريكا والمرجح ان ينجز الصفقة بنك أوف أمريكا.تنسق البنوك المركزية في اوروبا واليابان مع مجلس الاحتياطي الاتحادي"البنك المركزي الامريكي" الجهود لمنع انهيار البورصات العالمية جراء تداعيات انهيار بنك ليمان برذر ، وصفقة بيع ميريل لنش.وفي رد فعل أولي لاسواق العملات والاسهم فقد هبط سعر صرف الدولار الامريكي ، واتجه المستثمرون الى القنوات الاستثمارية الآمنة في مقدمتها السندات ، اما النفط فقد انخفض بشدة وخسر البرميل 7 دولارات ، واقترب مزيج برنت من حاجز 90 دولارا ، وسط ذعر المتعاملين في الاسواق.اشهار افلاس ليمان برذر الذي تأسس قبل 150 عاما ، وتعثر ميريل لنش يعود لانهيار السوق العقارية في الولايات المتحدة الامريكية قبل 13 شهرا عندما انفجرت ازمة الإئتمان العقارية التي تركت آثار كبيرة على القطاع المصرفي الامريكي والشركات العقارية وتم انجاز صفقات وصفت بأنها صعبة في سبيل منع هذا الانهيار الذي يبدو انه قد وقع متجاوزا كافة الاجراءات والتصريحات وادعم الذي قدمته الادارة الامريكية والحلول المالية والنقدية التي تم اتخاذها.الاسواق والبورصات العربية وخاصة الخليجية تراقب بحذر شديد لهذا الانهيار الكبير والمؤثر خاصة بالنسبة لهيئات الاستثمار السيادية الكبرى في الدول الخليجية التي توظف جزءا مهما من موجوداتها وعوائدها الضخمة في السوق الامريكية ، وحاولت خلال الـ 13 شهرا الماضية ضخ اموال اضافية في بنوك تعاني من تداعيات ازمة الائتمان العقاري الامريكية ، في خطوة محاولة حماية موجوداتها في رؤوس اموال هذه البنوك.ويؤكد محللون ان اصحاب القرار الفني لهيئات الاستثمار السيادية الكبرى في الدول الخليجية تفضل في هذا الوقت بالذات عدم الانغماس في صفقات لانقاذ افلاس ليمان برذر البالغة خسائرها اكثر من 50 مليار دولار امريكي .ويفضل المستثمرون المؤسسون والسياديون الاتجاه نحو الاستثمار في الاسواق الآسيوية التي تتمتع باستقرار وعوائد افضل واقل مخاطرة من النواحي الاقتصادية وغير اقتصادية ، وربما يعزز هذا الشعور وفي محاولة لتوزيع المخاطر واعادة تقويم فرص الاستثمار في المنطقة العربية.البورصات العربية ستعاني وقتيا سيما وان معامل الارتباط مع البورصات العالمية موجود من خلال الصناديق ، والتعامل على الهامش في المنطقة وهذا سيدفع بالمستثمرين لتسييل بعض موجوداتهم للخروج من البورصات الامريكية والاوروبية خلال الايام المقيلة.
 

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كتلني مايتحرك عن سعر الافتتاح انا منتظر معك
 
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السهم قبل هذا ارتفع الى ال 27 لكن انا واضع الرينج +-4 سنت وباعه بالالقليل 22 المفروض ادا باع 24 او 26 هدا ماقصده
 
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السهم قبل هذا ارتفع الى ال 27 لكن انا واضع الرينج +-4 سنت وباعه بالالقليل 22 المفروض ادا باع 24 او 26 هدا ماقصده

كلامك صح ما انتبهت للتاريخ وعموما السهم انتحر رسمي اليوم
 

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