Oracle DBA

Global markets dive after Lehman declares bankruptcy September 15, 2008

Filed under: Backruptcy,Stock market — gaphydba @ 9:36 am

Global stock markets plunged this morning after it emerged that Lehman Brothers, the 158-year old bank, had filed for bankruptcy after the failure of a weekend of rescue talks masterminded by US Government.

In London, the FTSE 100 index of leading blue chip companies fell by 154.2 points to 5,262.5 in early trading, reversing gains made at the end of last week when a chance to secure Lehman’s future remained.

In France, the CAC 40 index lost 2.48 per cent and Frankfurt’s DAX fell 1.55 per cent to 6,138.42 points.

The Bank of England stepped forward this morning and said it was “monitoring carefully conditions in sterling money markets and will take appropriate actions if necessary to stabilise those markets”.

Bank shares were predictably badly hit in early trading. Morgan Stanley was down almost 10 per cent in Frankfurt, while reports that the world’s biggest insurer, American International Group (AIG), was seeking rescue funding meant that its shares lost a third of their value on the German market.

Read More here and here

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3 Responses to “Global markets dive after Lehman declares bankruptcy”

  1. Wait until Wall Street opens this morning.
    That will dive without a doubt. If it brings global markets lower then this is a crisis like we haven’t seen in 80 years
    Today will be a defining day

  2. FaCt Says:

    How is this happened can you elaborate more

  3. Businezworld Says:

    Fact,
    This is the issue of availability of credit in these banks, what happening is banks are not lending and selling anymore.

    For economy to move forward we need to see the sytem of money flowing that means consumers are borrowing,lenders are lending and charging interests.
    what happening is these banks have black holes already in their balance sheet so they dont have capital to do lending even they don’t have capital to cover own expenses.

    The consumer who want to spend will not doing so,we gonna see most impact in the global economy this is the economy recessions
    1. High unemployement rate will rise
    2. lowest tax revenues
    3.less construction in economy

    What to do then?

    Untill the banks to recapitalised,they need to get money themselves.Recovery will take time.


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