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.
"You're waking up to a materially smaller net worth than you had Friday afternoon, there's going to be margin clerk panic liquidation in the first hour or two of the stock markets here in the U.S. as we can see clearly it's happening in Europe," Gartman told "Worldwide Exchange."
In brokerages, margin clerks total customer accounts and compute the difference between the purchase price of stock and their present market value. They also compute and record fluctuations and report the need of additional collateral to secure loans.
Asked about the future for Morgan Stanley and Goldman Sachs, Gartman said "I think their names will not disappear, I think they will be viable businesses."