Stories tagged with "Lehman brothers"

The Impact of the Credit Crunch on Energy Markets

Posted by Gail the Actuary on October 4, 2008 - 10:27am
Topic: Economics/Finance
Tags: credit market, lehman brothers, leverage, natural gas, oil, renewables [list all tags]

The credit crunch is already having an impact on energy markets. New projects are harder to fund. Highly leveraged companies are sometimes finding it necessary to shed assets. Some players are finding themselves to be the indirect casualties of other players, like Lehman, that have already failed. Long term, we will probably see consolidation and lower production than would have been the case without the credit crunch. Of course, if there is a major recession, it is possible that we won't need as high production.

In this post, I have tried to bring together some of the impacts of the credit crunch on the energy industry that are already being felt. If you are seeing other impacts, please make note of them in the comments.

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The Connection Between Financial Markets and Energy - Open Thread

Posted by Gail the Actuary on September 15, 2008 - 10:25am
Topic: Economics/Finance
Tags: finance, lehman brothers, original, peak oil [list all tags]

Today, the financial markets are struggling with Lehman Brothers' Chapter 11 bankruptcy, AIG's problems, and the sale of Merrill Lynch to Bank of America. There is also the problem of the unwind of the credit-default swaps tied to hundreds of billions of dollars of Fannie and Freddie debt. This thread is intended for folks who want to discuss what is now happening.

Some may be asking how all of this is tied to oil and energy. There are quite a number of relationships:

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Lehman: more socialising the losses of the rich

Posted by Jerome a Paris on September 13, 2008 - 11:04pm in The Oil Drum: Europe
Topic: Economics/Finance
Tags: debt, finance, lehman brothers, original [list all tags]

Talks Continue in Effort to Rescue Lehman

The fate of Lehman Brothers, the beleaguered investment bank, hung in the balance on Sunday as Federal Reserve officials and the leaders of major financial institutions continued to gather in emergency meetings trying to complete a plan to rescue the stricken bank.

The talks took on even greater urgency on Sunday as government officials push for a deal to be completed before the markets open.

After weeks of agony, Lehman's fate appeared sealed by the end of last week, as its stock market value dropped 74% in a few days, after having lost more than 80% since the beginning of the year. That the Fed and Treasury have called an emergency meeting over the week-end ensures that things are over for the bank and it will either be bought over the week-end (with someone taking over its liabilities) or go bankrupt.

Note: This is a cross-posting of Jerome's essay from European Tribune.

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