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Who stands to lose?
Anyone an investor in Lehman, Washington Mutual, or AIG?
"Lehman - one of the nation's largest and oldest investment banks - has suffered a dramatic and rapid descent. Its shares, which sold for as high as $67 in the past 12 months, have plummeted 94% this year and now trade at $3.65. In the past six months, the company has reported $6.7 billion in losses due largely to bad bets on real estate. At the same time, concern is growing about problems throughout the financial sector. Investors are worried about whether savings and loan Washington Mutual (WM, Fortune 500) has enough capital to survive the credit crunch and insurance giant AIG (AIG, Fortune 500), faced with the threat of a downgrade to its credit ratings, is said to be considering selling off assets to raise capital. Both companies have also lost billions of dollars this year due to the subprime mortgage meltdown." I wonder what shareholders stand to lose money when and if these institutions go down the drain? Certainly ordinary individual investors should have bailed long ago. IF WM goes under, most of its depositors will be ok. I've never been a fan of AIG and the way it is operated. Good riddance if it happens. |
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