Buffett %26 Goldman

Buffett %26 Goldman - Buffett& Goldman One Year Later A...

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Unformatted text preview: Buffett & Goldman One Year Later A. Gubin FIN 4504 Backstory • March 2008 – JPM Chase acquires Bear Stearns for pennies on the dollar • June 2008 – Bank of America acquires Countrywide Financial • July 2008 – IndyMac Bank fails – Federal Reserve Board authorizes NYFed to lend to Fannie & Freddie Mac if necessary Backstory September 2008 • September 7 – Fed Housing Finance Agency places Fannie & Freddie in government conservatorship • September 15 – Bank of America buys Merrill Lynch for $50 B – Lehman Brothers files for bankruptcy protection • September 16 – Fed authorizes up to $85 B in lending to AIG • September 17 – Ban on short-selling financial stocks Goldman Sachs • Consider their position – Basically all of their US competitors imploded • Lehman – bankrupt • Merrill – acquired • Bear Stearns – acquired • Morgan Stanley – would need outside investment – Who would lend them cash?...
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Buffett %26 Goldman - Buffett& Goldman One Year Later A...

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