Are you having a difficult time with Lehman Brothers press releases? Did you suspect that what was said one day was the opposite of what you thought you knew? You aren’t alone. Here is a timeline for you to digest:
23 August, UK MoneyMarketing: Lehman Brothers says it remains committed to its UK mortgage operations following the news that it will shut its US sub-prime mortgage subsidiary BNC Mortgage. The investment bank owns SMPL, Preferred and London Mortgage Company in the UK.
22 August, MSNBC: Lehman Brothers Holdings on Wednesday said it is shutting down subprime mortgage unit BNC Mortgage Corp., affecting the jobs of 1,200 employees in 23 cities and resulting in a $25 million charge.
9 August, Household HSBC Watch: Some suggest Lehman Brothers and HSBC are quiet for a reason. Eventually people will discover where subprime mortgage loans got their start. Even if Lehman Brothers unloaded all subprime assets the history is there and HSBC will again pay a price for association with Household International. Economic fallout could follow. Since HSBC publicly stated that they (HSBC) would export the Household Model to other countries, the worlds local bank could been seen in a totally different light. Back on the 19th of July Lehman Brothers rejected suggestions that they are exposed to subprime problems.
18 July, CNBC: Lehman Brothers denied market rumors that it is going to take a writedown related to subprime exposure. The rumor dented stock prices and spurred buying in Treasurys, traders said. “The rumors regarding subprime exposure are totally unfounded,” a Lehman spokeswoman said. Rumors have been circulating since mid-morning that Lehman specifically, and brokers and banks in general, will soon be revealing that they will have losses related to sub prime.
Subprime mortgages, shunned for years because of the default risk, helped fuel the U.S. housing boom this decade as securities firms led by Lehman and Bear Stearns Cos. profited by packaging them into AAA-rated bonds. A surge in late payments on the loans has since eroded confidence in credit products and roiled global debt and stock markets as investors fled to safer assets. Many of these bonds should never have been rated AAA in the first place.