Tuesday, September 16, 2008

2008 US Financial Crisis

Lehman Brothers - Investment bank. Undermined by bad bets on real estate.

News:
Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate -- the value of its shares declined 94 percent this year.

Merrill Lynch - Wealth management company. Suffered bad real estates bets.

News:
Bank of America plans to buy Merrill Lynch in an all-stock $50 billion deal, pending approval by federal regulators and shareholders of both companies, the bank said in a statement. The transaction is expected to close in the first three months of 2009.

Freddie Mac and Fannie Mae- Mortgage finance company. Suffered in the subprime mortgage crisis.

News:
This month, the U.S. government took over mortgage finance companies Fannie Mae and Freddie Mac. That was Washington's most dramatic attempt yet to shore up the nation's faltering housing market, which is suffering from record foreclosures and falling prices. That plan calls for the government to run Fannie and Freddie until they are on stronger footing.


Bear Sterns - Investment bank.

News:
Bought by JP Morgan Chase and Co.

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