This may take place before midnight.
Paulsen says no to government bail-out.
Bank of America and Barclays walk away
According to CNNMoney, "The Stakes are high" and may be spreading.
"Lehman - one of the nation's largest and oldest investment banks - has suffered a dramatic and rapid descent. Its shares, which sold for as high as $67 in the past 12 months, have plummeted 94% this year and now trade at $3.65.
In the past six months, the company has reported $6.7 billion in losses due largely to bad bets on real estate. At the same time, concern is growing about problems throughout the financial sector.....
Investors are worried about whether savings and loan Washington Mutual (WM, Fortune 500) has enough capital to survive the credit crunch and insurance giant AIG (AIG, Fortune 500), faced with the threat of a downgrade to its credit ratings, is said to be considering selling off assets to raise capital. Both companies have also lost billions of dollars this year due to the subprime mortgage meltdown."
Two hours of trading attempting to lower risk.
ISDA Statement on Lehman Brothers Bankruptcy Trades: Full Text
By Scott Lanman
Sept. 14 (Bloomberg) -- Following is a statement today from the International Swaps and Derivatives Association:
``ISDA confirms a netting trading session will take place between 2 pm and 4 pm New York time for OTC derivatives. Product classes involved are credit, equity, rates, FX and commodity derivatives. The purpose of this session is to reduce risk associated with a potential Lehman Brothers Holding Inc. bankruptcy filing. Trades are contingent on a bankruptcy filing at or before 11:59 pm New York time, Sunday, September 14, 2008. If there is no filing, the trades cease to exist. These trades are subject to a protocol which is being distributed by ISDA (International Swaps and Derivatives Association). Traders should execute the protocol and return to ISDA.''Last Updated: September 14, 2008 14:39 EDT
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