Monday, September 15, 2008
In this show. . .
Big firms' failures aren't the last of it
Lehman Brothers is filing for Chapter 11 bankruptcy, and Merrill Lynch has been snapped up by Bank of America. What's next in the mortgage-crisis fallout? Bob Moon takes us through all the changes.
Next big question: Can AIG hold on?
AIG, the world's largest insurance company, is being torn apart by losses from the subprime mortgage meltown. The company got some breathing room today but the question on Wall Street is whether AIG can survive the week. Jeremy Hobson reports.
Lehman finds itself the focus of failure
After 9/11, Lehman Brothers moved its headquarters from Wall Street to near Times Square, where the new building's garish light displays fit right in. That didn't put it on the official tourist map -- until today's events. Sally Herships reports.
Where will Lehman failure fit in history?
There's no way to know now what the net effect of the events of this weekend are going to be. Surely they'll be fodder for authors and analysts for decades. Commentator and business historian John Steele Gordon says it was bound to happen.
How could latest collapses affect you?
When a lot of us first heard the news about Lehman Brothers declaring bankruptcy, our first thoughts went something like this: What about my money? Marketplace Money host Tess Vigeland explains what to do with your personal finances.
GM hopes to get Volts into lagging sales
General Motors is celebrating its 100th anniversary with a big bash Tuesday in Detroit. At the party GM is expected to focus on the future and one very important car. Dustin Dwyer reports.
FDA eyes labels that are a little bit nuts
Food labels often make it tricky for people with food allergies to figure out whether something's safe to eat. The Food and Drug Administration on Tuesday is going to look into whether confusion is damaging confidence. Sarah Gardner reports.
Kai Ryssdal's final note ...
These final thoughts to wrap things up today:The ratings agencies have gotten their fair share of criticism during the subprime mess. As the financial industry was seizing up, Moodys, Fitch and Standard & Poors kept investement-grade ratings on bonds and securities that didn't really deserve them.
There's a development today that's not going to help their reputation any. Remember the news of the weekend -- that Lehman Brothers has formally gone broke with a Chapter 11 bankruptcy filing. Analysts at S&P saw that and wasted no time. Right after the barn door closed they downgraded Lehman's credit about as far as it can go.
And back to the AIG story that Jeremy Hobson was telling us about. The New York Times reports today the Federal Reserve has hired Morgan Stanley to consult on what to do about the teetering insurance company. Not that anybody should read anything into this, but the Treasury hired Morgan Stanley for advice on Fannie Mae and Freddie Mac, too.
Marketplace datebook for Tuesday, September 16, 2008
- In Washington, the Labor Department releases Consumer Price Index figures for August.
- The Federal Open Market Committee meets to discuss interest rates.
- And the Senate Committee on Commerce, Science and Transportation holds a hearing on the consumer benefits of broadband service in areas such as education and telemedicine.
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Kai Ryssdal took the reins as host of Marketplace in August 2005 after hosting the Marketplace Morning Report for more than four years. Before joining Marketplace, Kai was … Full bio
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