Friday I went home with the hope that Lehman would still exist on Monday.. But well, I guess weekends are reserved for bailout/bad news on financial firms.
Saturday, Leh was in news that Fed and Treasury are in talks with couple of Ibanks(Barclays, BofA, and couple of PE firms) to strike a takeover deal. Sunday, Barclays was the only firm in the race. Sunday evening, even Barclays chickened out. So wahst ahead for Leh.. May be bankruptcy! I think the things on Monday are going to get worse. Finaicials are going to go down, as investors would be worried about the hidden skeletons in the closet. Dollar, (I never got it right) I guess would get strong. My argugment is that as Fed/Treasury did not put in any money in the bailout, the general notion is that dollar is not weakened. Well, that should push the gold stocks down.. I should buy in more Gold stocks!!
In other news on financials, is that Bank of America (BAC) will buy Merrill Lynch for $26 a share. The most recent information on the deal comes from The Wall Street Journal. While the $26 is a significant premium to $17 where it closed on Friday, it is well below the $28 where it opened last Monday. That leaves AIG whose fate is to be decided next!
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