News

The credit crunch has proved to be a force not to be reckon with since the shocking news of Lehman Brothers filing for bankruptcy erupted yesterday and Merrill Lynch being taken over by a mere 50b by Bank of America.

Simply a shocking news aft mr peh during pbf kept emphasizing on these 2 high profile Wall Street firms during lessons. As an investment banker, my bets are he must have lost out quite a lot on bonds and equities bought. This piece of news came just about the right time as i was beginning to lose interest in pbf (bcoz of info overloaded) to jot my interest back in pbf. Besides, reading the articles posted online/in newspaper confirmed with the info printed in our lec notes..For once, it felt as if i was learning something that can be used in the real working world out there instd of merely regurgitation during exams full-stop.

It is unbelievable that Lehman Brothers with about 160years of history, having been through 2 world wars, 2 major economic crisis had actually failed at this pt of credit crunch. It just further showed how bad the credit crunch is at this pt.

AIA (under AIG) insurance company is also currently facing the heat. and my mom is worried. But I believe Sin's bank would be doing smth bout it as with CitiBank.

Extracted..
A consortium of 10 global commercial and investment banks announced plans to provide 70 billion dollars to help offset a credit squeeze.

Bank of America, Barclays , Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley, and UBS, said in a joint statement they "initiated a series of actions to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."

oh well. for now, the put-your-money-in-the-biscuits-tin would be a better investment/protection. Just when i was thinking of investment since savings interest is goddamn low 0.2%. ok. baby steps fr now on.