Rumour That Big US Investment Bank Is Going Belly Up
More in BUSINESS NEWS
back-up- Bank Of America CEO Tells Employees 'Protect Our Company'
- More On Compensation - BofA, Goldman, UBS
- Goldman Responds To 'Contradictory' Theories 'That Don't Stand Up'
- HPP Latest - A Recipe For Disaster
- 329,391 - Here Is The City Hits New Readership High
- Message To Credit Suisse & UBS Employees
- Hudson - Featured Recruiter of the Month
- Recruitment Firms We Like
- Lab49 - Featured Employer of the Month
- Latest Football News & Views
- The Banker & The African Queen - Chapter 6
- Executive Compensation - See What Your Boss Got (Updated)
- Best Place To Work Semi-Finals - Voting Update
- John Thain's Back! / 'UBS Was A Catastrophe'
- Blankfein 9 Dimon 16
- BofA Board Thought They Were Buying Lehman!
- 'Save Dave' - The Movie
- Banker Jailed For 5 Years Seeks $18m For Discrimination / Bullying
- 'PIGS' Or 'PIIGS' - That Is The Question
- Goldman's Official Postion On Financial Reform
- 'Save Dave' - The 'Scandal' Where There Were No Real Losers
- Compensation Round Up - Who's Getting What (Updated)
- Well Done Macquarie - Dave Saved
- Macquarie 'Save Dave' Decision In Tune With Public's View
- Click Here To Register For Free News E-Mail Alerts
- Save Dave - He Should Have Gone To Specsavers
- US Lawmakers Seek Bonus Tax For TARP Recipient Bankers
- BofA Sued For Alleged Misconduct During Time Of National Crisis
- Deutsche CEO Outlines Bank's New Comp Philosophy
- 'Strewth, Mate - It Was Only A Sheila In A Keeney!'
- 'In Australia, We Believe A Bloke Deserves A Fair Go'
- Top Firm To Lure Bankers With Cash Bonus Offering
- 'Save Dave' Campaign Goes Global As Macquarie Investigates 'Set-Up'
- Help Save Macquarie Banker's Job - Join Our Campaign
- 'Save Dave' - Your Comments
- Hedge Fund Manager Banned For Massaging Figures
- Oops - Naughty Trader Caught Red-Handed On Live TV
- And The Big Bonus Bankers This Year Work At......
- Top Firm CEOs Said To Be Playing Bonus 'Chicken'
- Best Place To Work Quarter Final Results
- Hank Paulson - 'I Am Really Scared'
- Top Firm Said To Be Adding 2,000 Brokers
- Top 'Life' Stories - January
- Goldman Fury At $100m Bonus Story
- 'Kill All The Bankers'
- 48,000 City Staff Lost Their Jobs During Downturn
- Trader Says He's Been Made Scapegoat As Firm Wants $5m Bonuses Back
- Compensation & Other News
- 'On The Brink' - By Hank Paulson
- Wall Street 2 - 'Money Never Sleeps' Trailer
Related Content
- Wanted - 200 Bankers For 'Skinny' Investment Bank (19/12/2009)
- Top Firm Urged To Spin Off Investment Bank (24/01/2010)
- Too Big To Fail (16/11/2009)
- And The Big Bonus Bankers This Year Work At...... (03/02/2010)
- Firm Sees 'Big Part' For Graduates / Interns In 2010 (22/12/2009)
- Calls Grow For Banker Pay Curbs / Splitting Up Big Firms (27/01/2010)
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.
