Chapter 584

The U.S. government knows the urination of Wall Street investment banks. Wall Street investment banks are vampires, and vampires ask investment banks to be brothers. All these people are shot, and few of them die in vain.

But you can't save it! They kidnapped the market and died together if they didn't save it.

The government can choose limited rescue, which depends on who is pleasing to the eye and the strength of public relations.

The subprime mortgage crisis has broken out for more than a year. Market investors have a clearer understanding of the causes of the subprime mortgage crisis and possible losses. A series of market rescue measures taken by the US government have also begun to play a role. On this premise, the closure of an investment bank will not cause greater panic in the financial market.

Under the tide of criticism of the government's rescue of the market, the US government also needs to clarify its position, that is, unless systemic risks are caused, the US government will not easily use taxpayer money to rescue private institutions. Private institutions should take responsibility for their decisions, including not only management, but also shareholders. This is why the US government said that it only protected the interests of creditors when taking over Fannie and Freddie, replaced the management and seriously diluted the equity value of Fannie and Freddie shareholders.

Responsibility for investment failure is one of the core principles of the free market.

Who knows, because they didn't save the damn Lehman Brothers, all the previous rescues were in vain, and the market plunged in panic.

On September 12 this year, US Treasury Secretary Paulson announced that the Federal Reserve would not aid Lehman Brothers, and Lehman Brothers' share price fell 13.5% to close at US $3.65, falling to a new low in 14 years. On September 13, the last straw for help, Bank of America, representing the will of the Federal Reserve, rejected Lehman's M & A intention, which meant that Lehman was completely finished.

In fact, I can't blame the government for not saving Lehman Brothers. Since the subprime mortgage crisis, the government has made many actions to save the market and made certain achievements. The investment banks realized that the death was coming and tried their best to save themselves.

Only Lehman, when the four major investment banks did everything to get rid of the subprime mortgage business, they also increased their positions in order to fish in troubled waters. Anyway, the government paid the bill in the end. How dare the government risk moral hazard to save such people?

They are determined to believe that the loan business is profitable. Maybe they can come back from the dead after the government rescues the market. When they find that all this is really irreparable and desperately call for help, they also hurt their heart and have no interest in saving people.

Perhaps they also understand that they are trying their best to block the dam that will burst sooner or later. Death is irresistible or unavoidable in fate and will come sooner or later.

September 15 is a historic day for the famous wall street.

In the early morning of this day, before working time, people couldn't wait to rush into the building. Some of them, as always, had straight suits, while others came to the company in casual clothes.

However, one thing is the same. They have two more things in their hands, empty backpacks and suitcases. People look dignified and cold and don't speak much. They enter their respective offices and pack their personal belongings. It seems that this scene is like a collective move.

When people walked out of the company with boxes, the metal signboard nailed to the black wall was still shining (Lehman Brothers).

At the door of the company, a staff member with a work card is warning everyone who leaves: "don't say anything to the reporter!"

Some people signed "souvenirs" on the portrait of Dick Fuld, chairman of Lehman before leaving. The sidewalk outside the company was already crowded with reporters. As soon as they saw the people packaged from Lehman, they flocked.

Some employees could no longer restrain their disappointment and anger and began to scold reporters. Indeed, it was difficult for everyone to accept the reality. One employee said, "this is the saddest thing in my life."

However, in the face of $613 billion in debt and the collapse of the company overnight, more than 20000 employees had no choice but to leave.

In the face of the serious subprime mortgage crisis, the company's board of directors had to make a decision to apply for bankruptcy protection when it was hard to find a buyer, and Lehman Brothers, the fourth largest investment bank with a long history of 158 years and ranking first in the mortgage bond industry in the United States for 40 consecutive years, officially announced its application for bankruptcy protection.

Immediately, more than 20000 employees began to retreat. Many people faced unemployment and re employment.

The collapse of American financial giant Lehman Brothers immediately triggered violent turmoil in the global financial market.

On September 15, Wall Street ushered in a veritable "Black Monday", the rice stocks plummeted, the Dow Jones index hit the largest single day decline since the "9.11" event, and the global stock market also plunged.

The Asia Pacific stock market fell sharply on September 16, among which Japan, Xiangjiang, Taiwan and South Korea all fell by more than 5%; the Australian stock market also suffered an earthquake. The Australian dollar opened weaker on September 16, and the stock market closed down by more than 1.5%. However, in the long run, the bankruptcy of Lehman Brothers has the greatest impact on the world because it further frustrates people's confidence in the market and the future.

The subprime mortgage crisis broke out in the United States in 2007, which not only brought heavy losses to the United States, but also to the global economy. The bankruptcy of Lehman Brothers indicates that the crisis will further escalate and more large financial institutions will fall in this crisis; the collapse of front-line investment banks, as the pillar of Wall Street, announced that the core of the U.S. financial system has been shaken, and the subprime mortgage crisis has officially evolved into a crisis A global financial storm.

Countless financial institutions will fall like domino cards, and what people need to pay attention to is who is next. As a senior Wall Street person said, we have created a crisis together, we have to pay a price together.

Buffett, the stock god, said: "those who mix Wall Street are naked swimmers!"

Another industry scholar said: "everyone on Wall Street is well dressed and bullish. As soon as the sea retreats, you will know who is swimming naked!"

Now Wall Street is devastated and naked swimmers are everywhere.

The police sent police officers to block the road to the roof of the building at the first time, so as to avoid the walking dead who have lost their soul, go to the roof, jump down and get rid of their troubles.

In the era of economic crisis, the top of this tall building is a holy land for suicide.

The plague like panic on Wall Street quickly spread to the whole meter and the world.

Although the proportion of Lehman Brothers is small, it has become a straw overwhelming the camel. The subprime mortgage crisis broke out last year can not be controlled. The crisis caused by panic hit the whole financial industry like a tsunami.

On September 15, the Bank of America issued a statement announcing its acquisition of Merrill Lynch, the third largest investment bank in the United States, for a total price of nearly US $50 billion.

Merrill Lynch, the third largest investment bank in the United States and the world's largest securities broker, has now become another victim of the global credit crisis. Among the falling "Wall Street giants", Merrill Lynch's experience is "different": it came the earliest in terms of crisis, but Merrill Lynch won valuable time to clean up its debt burden.

After the outbreak of the financial crisis, Merrill Lynch actively took various measures to protect itself, including raising a huge amount of capital, removing problematic assets, selling a large amount of equity assets, etc. In this case, Merrill Lynch and Bank of America suddenly reached an acquisition agreement. In a lightning merger, Merrill Lynch and Bank of America reached an agreement at a purchase price of US $29 per share. Merrill Lynch transferred the company to Bank of America at US $50 billion in stock exchange. After the merger, Merrill Lynch's share price immediately plunged 21.3%.

When the real financial storm hit, the unpopular Merrill Lynch company stumbled ashore. John SAIN, 52, known as the "fire captain of Wall Street", was not relaxed. After Stanley O'Neill, the former CEO of Merrill Lynch, resigned sadly, he took over for only ten months. During this period, his hair grew gray again, However, he somehow led Merrill Lynch to climb ashore and didn't drown in the water.

This is a deal full of "drama". Originally, people were paying close attention to Lehman Brothers, which was in deep trouble. Few expected Merrill Lynch to take such rapid and sudden action, which fully showed Merrill Lynch's panic about the financial storm. In the face of Lehman Brothers' despair, Merrill Lynch was obviously worried that it would be the victim of the next subprime mortgage crisis. Instead of waiting to die, it's better to take the initiative and win a better purchase price than bankruptcy liquidation.

However, this idea can only be regarded as a kind of self consolation at best. The 94 year history, the army of 16000 financial brokers and the reputation of "lightning tribe" have failed to escape the attack of the credit storm.

With the financial crisis becoming more and more serious, time is life in front of the crisis. Goldman Sachs and Morgan Stanley, the last two of the five major investment banks, made a request to the Federal Reserve to become a bank holding company. The latter soon announced the approval of the request of the two investment banks on the evening of September 21. This is a rapid forced "transformation".

Since then, Goldman Sachs and Morgan Stanley can not only set up branches of commercial banks to absorb deposits, but also permanently enjoy the right to obtain emergency loans from the Federal Reserve together with other commercial banks, which is expected to tide over the difficulties.

So far, in less than a year, Lehman Brothers went bankrupt, Merrill Lynch and Bear Stearns were acquired (Bear Stearns was acquired by * * * * in May this year), and the pattern of the five major investment banks on Wall Street was turned upside down.

For a long time, Wall Street, which has been at the core of world finance, is facing an unprecedented severe test. Former Federal Reserve Chairman Alan Greenspan announced with deep sorrow that this round of financial crisis on Wall Street is a once-in-a-century event, which means that the meter style financial dream marked by Wall Street formed after World War II is broken. Although it is difficult to say that it is the sudden collapse of the dream of a meter style power, it has sounded an alarm to the world that the meter style financial system needs to be updated and transformed.