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Germany gets nervous - asks (warns?) US to find solution on Lehman

Sunday, September 14, 2008, 10:02 AM

Just a little more context for the brewing Lehman situation (emphasis mine):


Quote:
NICE, France -- Germany called on U.S. authorities Saturday to find a solution for crisis-hit bank Lehman Brothers before Asian markets reopen for trading early Monday.

U.S. officials have so far talked down a government rescue for the country's fourth-largest investment bank, which is racing to find a buyer to raise badly needed money it lost on bad bets on real estate holdings.

Finance Minister Peer Steinbrueck _ who manages the EU's largest economy _ told reporters that "the news that is coming out of the U.S. is bad," confirming that financial markets are still suffering sharply from a credit crisis that started last year.

Observers who had prematurely spoken of "a light at the end of the tunnel" now had to make sure that they weren't facing an oncoming train, he warned.


"We expect that a solution will be put forward before Asian markets open on Monday,"
Steinbrueck said on the sidelines of an EU finance ministers' meeting in Nice.


Link to article

So far the central banks have all been pretty much united in their response to this crisis.  This article hints that fissures are opening up...

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3 Comments

jgreco's picture
jgreco
Status: Bronze Member (Offline)
Joined: Aug 9 2008
Posts: 31
What happens
What happens when the Government and financial institutions are finally overwhelmed? If not by this crisis then by the next crisis. It looks like we are close to that breaking point now...
NoLogos's picture
NoLogos
Status: Member (Offline)
Joined: May 16 2008
Posts: 12
Holiday in China, markets closed tomorrow
I think China has a holiday tomorrow, and their stock markets are closed.
drtwich's picture
drtwich
Status: Member (Offline)
Joined: Sep 14 2008
Posts: 1
factored in?
since the Lehman situation is not really a surprise or shock and it's stock is trading lower than anything. I a suprised that germany wouldn't have reduced it's exposure. I think that pretty much anyone that wanted to and had any sense has 'bailed'. The market has very likely factored this in and is ready to basically cannibalize the company. (just my opinion and some other econ reporters).

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