Gerry Sullivan

30 Investors Bound to Lose Big on GM

Is GM really going bankrupt? If they pay off the bonds maturing on June 1, 2009 (about $1 billion outstanding) GM doesn't have another
maturity for 18 months.

These GM bonds ($25 par) trade at $2.50 (Symbol GRM)...if they pay off, it is a 10-1 shot.

Say It Ain't So: Barclays to Allow Default of Lehman ETNs?

The ETNs are clearly debt obligations of Lehman. I don't see why anyone would be surprised. Read the prospectus.

Why Lehman Wasn't Saved

Felix Salmon is right. Lehman had to go bankrupt and take the preferred stock and part of the debt with it. Otherwise, how does this end?

When the Bear Stearns bailout was done, the Treasury and Fed was faced with a sudden surprise and shock. In the case of Lehman, Merrill Lynch and AIG and Wamu there can be shock, but no surprise.

The Fed told these institutions to do deals. Only Merrill did so, and Merrill was saved.

What happened to free market capitalism? Lever up too much and you are taking a risk. You might fail. Lehman did and AIG might fail this week.

Anyway, the employees made a lot of money. I hope they saved some of it.

And Then There Were Two: Securities Firms Come Crashing Down

Bank of America + Merrill Lynch, it looks more and more like Citigroup.
Why did BAC pay so much? They could have had Merrill for $10/share later this week.