Thur, 18 Sep, 2008
REMEMBER Black Monday? Well, meet Black Sunday. The financial crisis that pounded Wall Street over the weekend is shaping up to be just as bad as the one in 1987. Or worse. Some analysts are calling the fallout of the US subprime mortgage crisis 'earth-shattering'. 'This is welcome back to Black Monday,' Thomas Priore of Institutional Credit Partners, a hedge fund active in credit markets, told the International Herald Tribune.What makes the current crisis so bad is how it has put banks, investors, and bank customers and employees on tenterhooks.
Who's going to fall next?
The latest casualty was Lehman Brothers, which filed for bankruptcy yesterday, burdened by US$60billion ($86 billion) in bad real-estate holdings.
At the same time, Bank of America Corp is snapping up Merrill Lynch & Co in a US$50 billion transaction, and insurer AIG, hard-hit by the deterioration in the credit market, has been forced to restructure.But this won't be the end of it. Analysts say: Expect more investment banks to disappear soon.
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Sources:-http://newpaper.asia1.com.sg |
