brni (brni) wrote,
brni
brni

crisis? what crisis?

So, Bear Stearns was the first in the US fish tank to go belly up. Govt. response was to prop it up so it could be sold to JPMorgan Chase, and to loan JPMorgan Chase $29B to buy Bear Stearns.

Second and third floaters happened the same day. Lehman Brothers filed for bankruptcy (and is subsequently being sold off to Barclays for the cost of their NY area buildings). Merrill Lynch sold itself off in a surprise fire sale to Bank of America (who borrowed $50B from the FED to make the purchase).

On Sunday, the Morgan Stanley and Goldman Sachs (the last 2 investment banks in the US) both restructured - ceasing to be investment banks (regulated by the SEC) and becoming bank holding companies (regulated by the FED). This allows them to directly receive some of that $700B that is being rushed through congress.

I have yet to see how any of this really helps people stay in their homes, and without that, I expect things to continue to suck.
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