Lehman Brothers

[Weegee]

I had applied for a job with AIG in East Croydon...and the agent

rang me up last Friday.

He left a message about 'news on the position'. I was hoping it

would be about an interview...but I dont think it was!!

[SteveT]

He left a message about 'news on the position'. I was hoping it

would be about an interview...but I dont think it was!!

Perhaps you miss heard Weegee and said 'watch the news on our position'

You dont need the news when you have ed forum because Ladygooner had the full SP on hbos and Lloyds first.

[SteveT]

mockney piers wrote:-so not sure why the thought of AIG going tits up or lloyds 'folding' would be so welcome.

Not at all welcome as far as I am concerned mockers,

when these things collapse, no one knows the depth to which it will fall, and re-starting the economy from a position of debt makes it more difficult to rescue.

When a bank gets bailed out like Northern wreck, it is tougher to save the next one, so now they just merge and hope that the all important confidence, is maintained.

A few years ago Lloyds brokers were in the news when they had a number of syndicates go to the wall and it was described as a house of cards due to lots of reinsurance business being connected, no one realised how shakey it all was.

I personally much prefer to maintain the status quo rather than any dangerous financial failures.

[AcedOut]

So, just Goldman and Morgan Stanley left as the only IB-only banks.

Interesting article here about what their next move may be:

http://news.hereisthecity.com/news/business_news/8248.cntns

[SteveT]

According to Private Eye Lehman losses were 6.6 billion usd in 2008

Staff bonuses in 2006 were 8.7 billion usd

No feckless, reckless, snouts in troughs there then.

[blainiac]

I for one will be giving Northern Rock a call.....just a thought, surely the safest place to stick your filthy lucre at the moment.

[Peckhamgatecrasher]

Rubbing salt into the wound

[macroban]

Worse...

While paying bonuses they left the staff pension fund in deficit.

Now the taxpayer has to top up the pension fund.

[SteveT]

If we pulled such strokes we would get quod, how do they escape the locking up which they thoroughly deserve?

City bankers is rhyming slang innit?

[Guest]

Well, I'm probably going to lose my job, but due to the bank I work for being taken over rather than this week's events.

Worth bearing in mind that investment banking is massively regulated, and compliance with regulations is an ever-present topic and obligation. In this country the regulations are set by the FSA. Maybe give a thought to their role in this?

[SteveT]

I do hope you avoid unemployment Ms B it is no fun at all.

The FSA may be a lax bunch, but the wrongdoer's are inside Lehman's, in my opinion Ms B.

[huncamunca]

Ms B Wrote:

-------------------------------------------------------

> Well, I'm probably going to lose my job, but due

> to the bank I work for being taken over rather

> than this week's events.

>

> Worth bearing in mind that investment banking is

> massively regulated, and compliance with

> regulations is an ever-present topic and

> obligation. In this country the regulations are

> set by the FSA. Maybe give a thought to their role

> in this?

Hmmm

not in my ( long ) experience

The cynic would say The FSA is a de facto trade group, funded by the banks themselves - regulation is usually a reaction to a scandal, as the banks cry fould when anyone tries to get involved in their "rightful" business - there is a great deal of pussyfooting arou8nd - the Banks Bully the regulators and bully their auditors, knowing they can get away with it

The big few auditots have less idea of how to value a complex product that the babks do, and a bit of back testing ( based on the banks own information ) is usually enough to get the audit signed off - remember Enron? better to tuern a blind eye than lose a contract

The markets themselves are usually SRO's - self regulators and if anyone has experinced compliance issues with , for example, the base Metals markets, you will understand that they are toothless when it comes to forcing anyone of influence, to tow the line

The products that have gone pear shaped are hardly regulated, just because of the obtuse nature of the product and the inability to determoine accurate valuations, often due the to the opaque nature of these illiquid contracts

Compliance isn bandied about, but the reality is that making ? take priority

[SteveT]

Interesting post full of insider knowledge huncamunca.

[mockney piers]

The FSA have as sharp a teeth as the government allows them, and this government have indulged the city by leaning on the teeth to have blind eyes...or something.

The likes of Gordon Brown, Northern Rock et al have been far too optimistic that the good times will roll on, and of course they never do. But noone seems to have sufficiently planned for that. Hedging is not saving after all is it.

I liked Hislop on Question Time the other night, pointing out that Northern Rock and Halifax used to be building societies, and their bespectacled model of lending what you had may have been boring but at least it was safe. Then said that a couple of years ago Lloyds were being criticised for playing it too safe and falling behind their competitors; but who had to bail out HBOS...?

[Cassius]

SteveT Wrote:

-------------------------------------------------------

> I do hope you avoid unemployment Ms B it is no fun

> at all.

>

I actually quite like being unemployed - it's the lack of funds that goes with it that is no fun!

[AcedOut]

Mrs B - Were you in compliance at Bear Stearns per chance?

Best of luck with what's going on right now. Most people forget that the city is made of of thousands of non-trader and non-banker staff also.

[????]

The FSA has not much bite

Anyone with any ability in FS (but no morals, so that's most) has spent the last 10 years earning squillions rather than working for a toothless ineffective regulator getting paid peanuts (relatively)

All the brains are with the bankers who run rings round the toothless, 2nd Rate, FSA.....

...er that's it....

[Brendan]

So if you fall into the category of ?lazy people? like, oh let?s say someone like me perhaps, the FSA would be a pretty good place to look for your next job.

[Ted Max]

I know one person who works for the FSA. He is a total fud. Whether he is a lazy fud, I don't know, but I do know he is a childish, selfish, preening, obnoxious, bigoted, prep-school-hero-kind of a fud.

So I don't think merely lazy cuts it at the FSA. Sorry to disappoint you, Brendan.

[Brendan]

Bollocks!

Oh well, there's still most of Westminster I suppose.

[SteveT]

Ted Max er wots a fud?

Childish, selfish, preening, obnoxious, bigoted I can do

prep-school-hero I can bullsh!t that bit during the interview, but

fud I am floundering in the dark unless Elmer from Bug's Bunny has come to life.

[SteveT]

Cassius wrote: I actually quite like being unemployed - it's the lack of funds that goes with it that is no fun!

I whole heartedly agree Cassius

it is the worst paid er, job in my experience.