Lehman Brothers

A Day In The Life Of Several Hundred Laid Off Nomura Traders

They made their way in dribs and drabs. Hundreds of displaced bankers, shuffling up Suffolk Lane to All Bar One and along Upper Thames Street toward the Folly, the only pubs in the City of London open that early on an overcast Tuesday morning. One group of traders was threatened with dismissal after being caught on closed-circuit TV stealing candy from a vending machine. The shell-shocked men and women sipping pints and consoling each other had become part of a growing population. Faced with a toxic blend of zero-interest rates, stiffer capital requirements and a collapse in trading revenue, banks have announced large cuts to their European operations in recent months.

 

Goldman Sachs Gets A Quarter Million Summer Job Applicants

Goldman Sachs attracted more than a quarter of a million applications from students and graduates for jobs this summer, "suggesting fears of a ‘brain drain’ in the sector may be exaggerated as banks introduce more employee-friendly policies." The number of applications from students and graduates globally have risen more than 40% since 2012, the paper adds. This means there is greater demand to get a job at Goldman than there is even in China where recently 1.2 million job candidates applied for 19,000 much-desired govermment positions.

Business Loan Delinquencies Spike To Lehman Moment Level

This could not have come at a more perfect time, with the Fed once again flip-flopping about raising rates. After appearing to wipe rate hikes off the table earlier this year, the Fed put them back on the table, perhaps as soon as June, according to the Fed minutes. A coterie of Fed heads was paraded in front of the media today and yesterday to make sure everyone got that point, pending further flip-flopping. Drowned out by this hullabaloo, the Board of Governors of the Federal Reserve released its delinquency and charge-off data for all commercial banks in the first quarter – very sobering data.

Waves Not Solid Cycles - Echoes Of 2008 Warrant Worries

The current rash of cautious ignorant optimism is so very reminiscent of the period right after Bear Stearns in 2008. Ben Bernanke as late as June 2008: "The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so." Janet Yellen said, “the strong incoming data on spending eased my fears that we are in or are approaching a recession regime” before expressing confidence in rate hikes starting in December 2008! The mainstream takes the absence of further liquidation as if there will be no more liquidations when in fact the likelihood of more of them only rises the more they are artificially “contained.”

Steve H. Hanke's picture

Ever since the U.S. Federal Reserve (Fed) began to consider raising the federal funds rate, which it eventually did in December 2015, a cottage industry has grown up around taper talk. Will the Fed raise rates, or won’t it? Each time a consensus congeals around the answer to that question, all the world’s markets either soar or dive.

The Washington Post Accuses Stingy Americans Of Ruining Obama's Recovery

Dear broke American consumers which once made up the world's most vibrant middle class: please stop being such a nuisance and source of confusion to nice Op-Ed columnists at the WaPo, the WSJ and, of course, the Fed and their $4.5 trillion in direct injections into the offshore bank accounts of America's wealthiest 1%, and instead go ahead and splurge all your savings on trinkets, gadgets and gizmos you don't need. Only that way will Obama's recovery be truly complete.

The Cure Is Worse Than The Disease

Today we look back to the recent past with singleness of purpose.  Context and edification for the present economy is what we’re after.  We have questions... How come the recovery has been so weak?  Why is it that, nearly seven years after the official end of the Great Recession, the economy’s still mired in a soft muddy quagmire?  Squinting, focusing, and refocusing, there’s one particular week that rises above all others.