kipp440: Lehman
This caught my eye in that article:
"If there is a bankruptcy today, then Lehman’s brokerage units would have to file Chapter 7 liquidation, in which a court-appointed trustee would take over and liquidate its assets, so the broking customers could get back their money."
My understanding is that the stocks, etc. in customers' accounts would be transferred to other brokerages. If a customers' cash is in a money market or other Lehman cash account other than an FDIC bank account, my guess is THAT part of a brokerage account might be lost.
If Lehman goes under, little investors like us will be shaken.
It could cause a run on brokerages. Or it might cause brokerage customers to move money market cash into solid stocks. The U.S. Government cannot bail out every financial institution that is going to go under. The U.S. dollar would become worthless.
Let's hope that Secy. Paulson can work something out. It'll be interesting to see how the Toyko market reacts to this latest pathethic mess.
