$85 BILLION bad bank?????
From the WSJ:
Under a plan that was crystallizing Sunday, either Barclays PLC or Bank of America Corp. would buy Lehman's "good assets", such as its equities business, people familiar with the matter say. Lehman's more toxic, real-estate assets would be ring-fenced into a "bad" bank that would contain about $85 billion in souring assets. The move would avert a flood of bad assets deluging the market, damaging the value of similar assets held by other banks and insurers.
$85 billion in souring assets???? From just one firm. That is more than the total reported net assets of every public homebuilder. How much of our economy is simply BS??????????????
Now you know why it is so important that accounting is fair and accurate. At this point, few really know what is solvent and what is not anymore????
No wonder there is every fricken banker scrambling around New York this weekend freaking out.