Banking, finance, and taxes
Vegas Odds: Another Large Financial Firm Will Fail (LEH)(WB)(WM)
Published:
Last Updated:
Bear Stearns was not the end of it. Institutional investors think at least one more large firm will fail, probably over the next six months. Although those surveyed did not name a company, at this point those mentioned most frequently in the press are Lehman (LEH), Washington Mutual (WM) and Wachovia (WB)
According to the FT, "Nearly 60 per cent of US and European institutional investors surveyed by Greenwich Associates believe there will be such a failure within the next six months. Another 15 per cent think it will happen in six-12 months"
Recent estimates of the total damage that will be done by the mortgage-paper disaster put the final amount of write-offs at between $1 trillion and $2 trillion. Perhaps $500 billion of that amount has already been booked.
Sentiment within the industry has moved heavily toward worst-case thinking. There is not much of a defense for the opposite side of the argument being true.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
