Rumour That Big US Investment Bank Is Going Belly Up
More in BUSINESS NEWS
back-up- Top Firms Finally Hit By H1N1 Threat
- Top Firm Caught Out By Rogue Traders
- 'It's Not As If They Paid Great Bonuses In The First Place!'
- Top Firm Chain Letter
- Sisters Are Doing It For Themselves
- Dear All - 'I Am Not Interested' In Bank of America Job
- Bank of America, BNP Paribas, Goldman, JPMorgan, Galleon Group
- Old Traders Never Die - The Seance
- Click Here To Register For Free News E-Mail Alerts
- Speculation Mounts About Goldman's Bonus Plans
- Top Boss Tells Church Crowd 'Profit Is Not Satanic'
- Your Views On Bonuses (Poll Results)
- Bank of America 'Is Not A Monarchy'
- Bankers Will Have The Last Laugh On Pay
- 'There Aren't Many People Who Think Charlotte Is A Major Financial Center'
- Top Firm Delivers 'Another Big Disappointment'
- Bank Of America CEO Poll - Incredible Result
- Scruffy Civil Servant Warns Tax Dodgers
- BofA Said To Have Got Another Turn-Down
- Interview With Bernie Madoff
- Top Firm Dismisses Talk Of Further $10bn Writedown
- The Average British Soldier
- Top Firm Puts More Aside For Staff Compensation
- Firms On Alert As Insect 'Infestation' Crashes PC Networks
- Register Now For Free 'Old Traders Never Die' Updates
- Secretary Geithner's Written Testimony On Reform Of Financial System
- ISITC Europe Successfully Introduces New Operating Structure
- Dumb & Dumber - Incredible Details About Lehman Weekend Revealed
- The Cityboy Column
- The Man Bank of America Should Hire As CEO (But Won't)
- Goldman Needs To Give Away $1bn
- Top Firms Said To Have Lost $400m On Hedge Fund
- H1N1 Flu - Have You Got It ? (Quick Test)
- H1N1 Bank Call Center Transcript (You Couldn't Make It Up)
- 'It's Just No Fun Anymore!'
- Top Firm CEO Says He Won't Poach Staff From Rivals
- 'I Hate Recruitment Consultants' - Reader Comments
- Bohemian Bankruptcy
- 'I Hate Recruitment Consultants'
- Mack Attack - The Moment Big John Hit Back
- Compliance Training ? 'The Biscuits Were Good'
- Banker, Hire Thyself
- IT Recruitment - The Smart Way
- And Wall Street's Top Athlete Is...........
- John Mack On Saving Morgan Stanley
- Bankers Taught How To Be Killing Machines
- Banks Given Five More Days To Justify Bonuses
- Billionaire Madoff Investor Found Dead In Swimming Pool
- Top Bailed-Out Execs Averaged $18m Each In 2008
- The Vic Daniels Column - 26/10/09
Related Content
- Top Firm Delivers 'Another Big Disappointment' (03/11/2009)
- Mack Attack - The Moment Big John Hit Back (27/10/2009)
- Did You Know Investment Bankers Are Actually Underpaid ? (20/09/2009)
- He Made More From Investment Banking Than Anyone Else (15/10/2009)
- Not Every Banker Will Be Laughing All The Way To The Bank (10/08/2009)
- Bank of America 'Is Not A Monarchy' (04/11/2009)
Thomson Financial quotes one unnamed trader who said that 'we've heard vague talk a US investment bank is in trouble'. However many are dismissing the rumour as just that, pointing out that there would surely have been some kind of announcement by market regulators if a Chapter 11 filing was in the offing. That might not be the case, though, as regulators would want to manage any such announcement in a way to does not create even more market panic. Some feel that, behind the scenes, regulators might now be working to arrange a bail out or takeover if a big player is really in trouble. Another trader said that 'the market is so nervous at the moment, I think it's just rumour following on from rumour. (However), I don't think anyone know's what's going on'.
The rumours did, however, have an effect on the market Tuesday as US futures initially moved lower. And one of the reasons that some feel that there may be something to this rumour is that the big three US financial markets policeman, Treasury Secretary Hank Paulson, Federal Reserve chairman Ben Bernanke and Senator Chris Dodd were locked in a meeting Tuesday. Business as usual, or another market crisis ?
And big firms can go bust - Baring did a little over a decade ago, thanks to one Nick Leeson.
If anyone knows anything about these rumours, please mail us in confidence at news@hereisthecity.com
READER COMMENT
'I think that the rumours are untrue. If the Fed had not cut the discount rate Friday there may have been a couple of US firms in the frame for Chapter 11. The fact that they did cut got whoever it was out of the mess'.
'I hear that it's Origami Bank that has folded!'.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
