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Bankruptcy in the financial world
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by: stickystebee
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Word Count: 449
Changes in the financial world
The “big brains” in charge have no idea what will further happen and what position to take facing the world crises. So you think is right to panic after the two companies on Wall Street have collapsed (in September 2008), and Wall Street has undergone the most powerful crash of the past seven years. It is particularly difficult to figure out what will happen to the markets in the following weeks.
If we think long term, however, it does not make any sense to sell because that would cease to contribute to your pension plan in the hope that you know when the market reached its lowest level that you can begin to invest again. Meanwhile, other issues are on the list of priority concerns, that if you're one of millions of consumers who have commercial links with those at Merrill Lynch, Lehman Brothers and its Neuberger Berman unit or American International Group. If you are one of the customers of Merrill Lynch, you can still access your accounts online or can call your agent to grant the same number as last week. "It is the usual business", said Scott Silvestri, a spokesman Bank of America, who on 14th September 2008 signed an agreement to acquire Merrill Lynch. If your broker decides to leave, you have to decide if you follow. If you do, the transition is a little difficult and you could lose access to your funds for a week or two until the new company you move assets to Merrill. This was a problem in the case of former mergers, although The Financial Industry Regulatory made an effort to solve.
If we were Lehman Brothers, first it is important to take note that the brokerage unit of Lehman was not in bankruptcy; only its mother. Thus for the investors "value", things are not different from last week. "You can sell and buy, you can do what you want with your assets" says Stephen Harbeck, president of the Securities Investor Protection Corporation. Washington. Stock investors are protected by rules imposed by the U.S. Committee which maintain a special reserve to help investors of the brokerage firms that have crashed. Possibly, the brokerage from Lehman will find a new host. Regulators are working at Lehman offices to ensure that customer assets are transferred in an orderly manner to one or more brokerage firms insured by the Securities Investor Protection Corporation. Currently, customers do not have grounds for concern and won't have to manage debts just yet. That's because their assets are kept separate from the assets of their own brokerage firms and cannot be achieved by bankrupt institutions or their creditors.
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Regulators are working at Lehman offices to ensure that customer assets are transferred in an orderly manner to one or more brokerage firms insured by the Securities Investor Protection Corporation. Currently, customers do not have grounds for concern and won't have to manage debts
just yet.
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