How the mighty have fallen on Wall Street. But is it any surprise when Lehman Brother and Merrill Lynch avariciously jumped into the sinkhole of risky mortgage lending while the Bush regime aided and abetted these super wealthy, anything goes to make a profit financial institutions, by applying no prudent government regulations or implementing no effective oversight, but instead encouraging the feeding frenzy with its hands off policies.
It was a greedy free-for-all based on roller coaster mortgage fraud that these companies thought would never come down, enthusiastically supported by the Bush crime administration. And now, when it comes time to pay the piper, companies like AIG are trying to get corporate welfare at the government trough for their gluttoness, unwise actions.
Here are some highlights from the
NYTimes:
"In one of the most dramatic days in Wall Street's history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, filed for bankruptcy protection and hurtled toward liquidation after it failed to find a buyer."The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments. (Underline added.)
"But even as the fates of Lehman and Merrill hung in the balance, another crisis loomed as the insurance giant American International Group appeared to teeter. Staggered by losses stemming from the credit crisis, A.I.G. sought a $40 billion lifeline from the Federal Reserve, without which the company may have only days to survive.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence.
"The Fed, meantime, broadened the terms of its emergency loan program for Wall Street banks, a move that could ultimately put taxpayers' money at risk.
"How things play out could affect the broader economy, which has been weakening steadily as the financial crisis has deepened over the last year, with unemployment increasing as the nation's growth rate has slowed.
"The meeting was called by Fed officials, with Treasury Secretary Henry M. Paulson Jr. in attendance, and it included top bankers. The Treasury and Federal Reserve had already stepped in on several occasions to rescue the financial system, forcing a shotgun marriage between Bear Stearns and JPMorgan Chase this year and backstopping $29 billion worth of troubled assets” and then agreeing to bail out Fannie Mae and Freddie Mac.
"The bankers were told that the government would not bail out Lehman and that it was up to Wall Street to solve its problems. Lehman's stock tumbled sharply last week as concerns about its financial condition grew and other firms started to pull back from doing business with it, threatening its via
"The fates of Merrill Lynch and Lehman Brothers would not seem to be linked; Merrill has the nation's largest brokerage force and its name is known in towns across America, while Lehman's main customers are big institutions. But during the credit boom both firms piled into risky real estate and ended up severely weakened, with inadequate capital and toxic assets. (Underline added.)
"What will happen to Merrill's 60,000 employees or Lehman's 25,000 employees remains unclear."
Gee, Jeb Bush, former terrible governor of Florida, may have lost a big meal ticket. One of the slimey, greedy, criminal Bush brothers, with a history of scamming and fraud, was a paid consultant for Lehman Brothers. His former gubernatorial chief of staff, in charge of investing billions of Florida state funds, apporved the investment of $842 million in securitzed mortgage bonds from.....Lehman Brothers. What a coincidence!
The Bush administration and its appointees heading the Federal Reserve, Ben Bernanke, and the Treasury Department, Henry Paulson, didn't do their jobs to protect the American public and taxpayers, but kept insisting that everything was great with financial institutions until it wasn't...and catastrophe hit.
Meanwhile, this economic and fianancial crisis that the Bush regime helped cause will impact disastrouly on already struggling American taxpayers
And the Wussacrat House leaders, headed by Nancy Pelosi, covering Bush's back and screwing the American people, are still defiantly keeping impeachment off the table. Time for a leadership change, next term.
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