This is a news item that many missed. Lehman Brothers went down today. What many don’t know is that on Sunday afternoon, in a session only for the Wall Street dealers – these vultures who had already profited from the mess in the market, were allowed to reduce their exposure to Lehman brothers.
U.S. regulators and bankers were making last-ditch efforts on Sunday to prevent toxic assets from ailing Lehman Brothers spilling into global markets and rupturing investor faith in the international financial system.
Basically in a unprecendented, surprising and unethical move – ONLY one class of investors were allowed to close their exposure to a bad investment – while millions of individual investors looked on counting their losses.
The session was initiated by the Federal Reserve.
The special session “is a way to offset the risk between the remaining large banks and insurance companies and fund managers prior to the markets opening in Asia,” said Mark Grant, managing director of structured finance at Southwest Securities, based in Dallas.
What a sham the US financial markets have now become!