Big investment banks like Goldman Sachs and Morgan Stanley are most at risk of liquidity challenges as markets sell off, Dick Bove says.» Read More
There really isn't a bad risk in the insurance business. There is bad pricing of that risk.
Investors will wake up to see their portfolios shrunk compared to close of trading on Friday and there will be some panic selling in the U.S. market Monday morning, but the Lehman collapse is unlikely to bring any more investment bank bankruptcies, Dennis Gartman, founder of the Gartman Letter, told CNBC.
Lehman Brothers, which filed for bankruptcy Sunday to became the largest casualty of the global credit crisis, is still trying to sell its asset management business, including the crown jewel, Neuberger Berman.
The U.S. financial system was badly shaken by the failure of Lehman Brothers, the surprise takeover of Merrill Lynch and big asset sales by AIG.
Bank of America said it agreed to buy Merrill Lynch in an all-stock deal worth $50 billion, snagging the world's largest retail brokerage after one of the worst-ever weekends on Wall Street.
American International Group will announce an asset sale or capital injection as soon as tonight, or sometime tomorrow, CNBC has learned.
"There were people here who just a few weeks ago would go through hell for Dick Fuld," said one former Lehman executive. "That has changed. People want his head."
Wall Street seemed to be preparing for a bankruptcy filing by Lehman Brothers on Sunday as a special trading session for credit default swaps was called.
As top Wall Street executives arrived Sunday morning for another round of talks to resolve the Lehman Brothers crisis, sources said the group was focused on how to handle a deal not getting done before Monday.
A deal has been drafted to buy Lehman Brothers' bad assets and clear the way for an eventual sale of the troubled firm, CNBC has learned.
Executives from the major Wall Street firms expressed reluctance at a plan by government officials to have each firm chip in money to buy Lehman Brothers' troubled real estate portfolio.
Increasing optimism about loans to the U.S. auto industry helped drive major indexes out of negative territory. General Motors was the top gainer on the Dow Jones Industrial Average and S&P 500, while Ford was among the top gainers on the Nasdaq.
Despite the the bailout of Freddie and Fannie and Lehman's questionable survival, the S&P 500 Financials Sector is still up over 20% since hitting a low in mid-July. Will the Financials stay above their July lows or fall back with the latest news? Here is the latest data on how short interest has changed over the past few months and where bets are being made.
Commodities continue to drop, as they have for 7 of the last 8 trading sessions. With futures weak again here, we are very close to breaking the recent closing low of July 15 of 1,214.
There has to be some sign of stability in write-offs before there can be any confidence for additional investment.
Three trades for tomorrow… who are the market’s hidden winners… how should you play the tumble in gasoline prices… and what’s next for gold?
Stocks closed with modest gains after rallying earlier on a drop in oil prices, but investors continued to worry about financial shares.
Stocks turned higher after investors speculating that Lehman Brothers might survive its capital crunch stepped in to turn the company's stock higher in whipsaw trading.
Lehman is expected to release third-quarter results ahead of time after its stock plunged as much as 40% on Tuesday.
The Dow and S&P soared on Monday as investors bet Washington's Freddie and Fannie bailout will stabilize the housing market and ease the credit crisis.