Chapter 1790: Lei Man Brothers Bankruptcy (3/10)

As the global economy deteriorates, the dollar continues to depreciate, and the decline in the stock market in the country is still unstoppable. Although it seems that the daily decline is not large, only a few percent, but can not hold down every day.
In particular, companies in the financial industry are almost all leading the decline. The major commercial banks and financial investment companies in the country are not able to pull up their stock prices.
Although the country’s political axe, the world’s major banking institutions are injecting capital, it is still unable to save the market.
The more chaotic the market, the more extreme the approach that financial investment firms will adopt. No way, it has already lost too much. If you don’t adopt some extreme investment methods, you can’t turn around.
It is not as good as gambling, but if it succeeds, it will not only be able to successfully turn over, but even have a lot of profits.
At this time in the financial market of the country, most of the high leverage was from the financial companies in the country, in order to attract more investment, so that they can make more profits and fill the deficit.
There are more and more junk bonds on the market. Many bonds that used to be more expensive than gold have now become a piece of waste paper.
In addition, those candidates are still attacking their D at this time, so that the candidates they sent out are very embarrassing.
However, these little cloths have no time to pay attention. What he wants most now is not to make the situation worse before he leaves office. It is better to have the market collapse after the successor takes office. The responsibility is not his.
If it can be like this, maybe you can also drag the successor down, which is the most beneficial for them. Anyway, in his view, even if the financial market collapses in the country, other countries cannot exceed the country. After all, this is the most mature and advanced financial market in the world, and the country is the world's largest country.
Moreover, the financial market in the country has been hit, and other financial markets are inevitable. Whether it is in Europe or Asia, the financial market will be affected. The financial market, which is largely unaffected, is particularly closed. The particularly closed financial market is not prosperous at all.
"Mr. President, it seems that we have had a big problem!" The Secretary of State came in to report.
"What?" Xiaobu 10 now hears a lot of bad news every day, which makes him scream.

Two other financial companies filed for bankruptcy protection, and one directly declared bankruptcy!

Sure enough, it is bad news. In the past six months, he heard too much similar news, and can't there be some news that makes him happy?

Is it large? Does it have a serious impact on other financial institutions?


The scale is not big, but it has a small impact on the industry. Among them, the Leiman brothers are the most serious. In the first quarter, they lost $2.8 billion, and the second quarter lost $4.1 billion. The third quarter is expected to be a loss. Will be more than eight billion dollars!"
"There are rumors that Goldman Sachs manipulated the stock price behind the scenes. The bankruptcy of Bear Stearns in the first quarter also had a great relationship with Goldman Sachs, but the specific evidence did not."

The original Barclays Bank plans to acquire the Leiman Brothers, but after verification, the Leiman Brothers’ cash reserves are less than 100 million US dollars, which is unbelievable for a financial institution of this size. But at this time, the debt of the Leiman brothers. It has already exceeded 500 billion US dollars and it has already been insolvent!"
Xiaobu was shocked. The first two months were not so serious. How did the debt exceed $500 billion? This is the fourth largest investment bank in the country, and it has been famous.
The loss doubled and the debt doubled to rise. The political axe gave so many emergency funds, and gave so many loans, aren’t they all squandered?
What is the meaning of insolvency? Xiaobu 10 is very clear. Any company that is insolvent will eventually have to go bankrupt.
Since the listing of the Leiman Brothers Bank in 1994, the first time there has been a loss, and then it has been sluggish. In the fourth quarter of last year, the company is still profitable. Is it that their finances have long been a serious problem, but they have been covered up by financial means?
But the company should not start to lose money, and the company couldn't help it. How can this company's ability to withstand pressure be so bad?
But think about Bear Stearns, which went bankrupt in the first two months, may understand it.
Last year, Bear Stearns' market value was close to 20 billion US dollars, and the scenery was infinite. Two months ago, when Bear Stearns went bankrupt, it sold only more than two billion dollars, and its assets shrank by more than 95%. The stock price has already fallen below the issue price.
The bankruptcy of Bear Stearns is not only because they hold a large number of debt-backed bonds, but also because of the financial crisis, a large number of investors have concentrated on paying, so that their cash suddenly becomes 0!
The cash reserve of a financial institution is 0. How does this work? So in March, the company’s stock price fell from less than three dollars in just a few days.
Of course, there is Feng Yu's figure inside, but it is Goldman Sachs, who makes Feng Yu's investment, is the leverage provided by Goldman Sachs' financial companies?
The country’s political axe provided Bear Stearns with a $30 billion emergency loan. Even so, the company failed to resist and was eventually acquired by Morgan Datong for more than two billion dollars.
It’s not that the value of this company is just that, but don’t forget that this company is also carrying huge debts. Many financial institutions interested in this company have been scared away by this huge debt.
During this period of time, the country has been financially bankrupt, and these small cloths have all thought of it, but never imagined that giants such as the Leiman brothers will be on the verge of bankruptcy!
"I will immediately contact the Bank of America and other institutions to let them contact the Leiman brothers. The Leiman brothers can't go bankrupt, which will make the financial market situation worse!" Xiaobu said.
Since Barclays has been interested in the Leiman brothers, it shows that the Leiman brothers still have many valuable assets. Besides, the Leiman brothers themselves have many large investment companies investing in them, will they not stretch out at this time?
"Already contacted, Barclays has not completely abandoned the interest in the acquisition of the Leiman brothers. This time, with the addition of the Bank of America, should it be able to come back to life?"
In the afternoon of the small cloth ten, in the afternoon, the representative lawyer of the Leiman brothers submitted the documents related to the application for bankruptcy protection.
Xiaobu’s ten people are all overwhelmed. Isn’t it true that there will be two big banks negotiating and buying? Isn’t it still predicting the financial situation in the third quarter? How can I suddenly file for bankruptcy protection? !
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