Go shopping, of course. The quintessential value investor reacts exactly the way you’d expect, snapping up a good company that (he thinks) has been unfairly punished in the market. From CNBC.com:
A subsidiary of Warren Buffett’s Berkshire Hathaway just announced a tentative agreement to buy Constellation Energy for roughly $4.7 billion
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I’ve got my own piece up on Time.com this morning, about the fate of Morgan Stanley and Goldman Sachs, the last two investment banks standing.
In it, I point out that yesterday the yield on the 3-month Treasury was 0.04%, down from 0.68% the day before. There are so many people rushing to the safety (am I still allowed to use that …
The Connecticut Hedge Fund Association got a lot of queries this week about whether its annual conference in Greenwich would go on as planned. It did, and Reuters tells us what it was like:
The $1.9 trillion hedge fund industry’s own losses were on the minds of the roughly 350 managers and job seekers settled into a local hotel’s
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It’s not that AIG is too big too fail—rather that it’s too connected to the rest of the financial system for policymakers to stand by and watch it collapse.
At the heart of that connectedness is the credit default swap (CDS). Not familiar? Back in March, Janet Morrissey wrote a story for Time.com explaining what they are, why they …
Perhaps I hyperbolize, but it’s still interesting to note—as esteemed business editor Bill Saporito just did to me and Justin—that B of A issued the first private mortgage-backed security. Bill was reading a paper about the resiliency of mortgage-backed securities when collateralized-debt-obligation markets are disrupted (timely!) …
That Q&A I mentioned yesterday is now on Time.com. I talk about what happens to your insurance policy at AIG if the company declares bankruptcy, what happens if your mortgage lender goes belly up, and other good stuff.
Barbara!
This evening I was talking to someone from Lehman’s research department and I asked about his day at work.
He was surprisingly calm, asking what good it would do to get upset. He said he got an email yesterday to come to work today. So he rode his bike in from Brooklyn—as he’s gotten into the habit of doing—but when he went to the …
The outplacement firm Challenger, Gray & Christmas just sent around some numbers that put the thousands of jobs being lost at Lehman into context.
Annual Financial Sector Job Cuts in the
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That’s one question my mother had last night. I’m going to try to answer those sorts of consumer/personal finance questions throughout the day, so let me know what you’re wondering. Not just about Merrill and Bank of America, but also about the other companies in the news—Lehman, AIG—or bigger-picture issues like what happens to your …
When my colleague Jyoti Thottam wrote this profile of Bank of America CEO Ken Lewis in January, we used the headline “The Savior of Countrywide?”
Guess we can drop the “Countrywide” and question mark.
Here’s B of A’s rundown about how big and bad it is, now that it’s swallowing Merrill Lynch:
The combined company would have leadership
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In an interview with Reuters, PIMCO CEO Mohamed El-Erian sums up the day’s events so far quite nicely: “In today’s highly disrupted financial markets, the unthinkable is thinkable.”
He was playing off the news of a rare, emergency trading session Sunday afternoon to let Wall Street derivatives dealers reduce their exposure to Lehman …
It’s a sunny Sunday afternoon here in New York and downtown the Who’s Who of high finance are racing to come up with a plan to deal with Lehman Brothers. Here’s the latest (as of about noon), from the New York Times:
The fate of Lehman Brothers, the beleaguered investment bank, hung in the balance on Sunday as Federal Reserve officials
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