“Roubini was in fine form yesterday, scaring the bejeezus out of his followers on Twitter by saying that several huge financial institutions could collapse in the blink of an eye like MF Global.
These houses of cards, Roubini tweeted, include:
The problem, as Roubini has consistently warned, is the banks’ dependence on short-term financing to maintain their long-term asset leverage and run their businesses.
What killed MF Global, Lehman Brothers, Bear Stearns, AIG, and other huge financial firms, after all, was the sudden refusal of short-term lenders to continue lending money to the firms.”
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Lehman was leveraged 30+ to 1. Bear was also more than 30 to 1. MF was 40+ to 1.
GS is 13:1 and MS is 14:1.
JEF is smaller than MF. If JEF goes under, fuck ’em. Barclay’s is English. Again, fuck ’em. They don’t count for shit in the grand scheme of things.
Goldman is not immune but very well connected and I doubt that happens.