Reuters: Some Wall St banks seen riskier than poor countries (Kazakhstan, Nigeria, et al....)

[jordi_fanclub]

Source: Reuters

LONDON (Reuters) - Turmoil and uncertainty over some of Wall Street's best-known investment banks has left some facing rougher market conditions that price them as riskier than developing countries or banks in volatile areas of the world. Seen for decades as the power brokers in emerging market finance, Wall St firms' sudden underdog status points to the magnitude of fear surrounding them -- and perhaps a degree of confidence in the longer-term stability of developing countries.

Shortly before it received a Federal Reserve-backed rescue package late last week, the cost of insuring the debt of U.S. bank Bear Stearns was higher than that for banks in Kazakhstan, one trader said.
...
Early on Tuesday, before it posted results, the cost of protecting debt at Lehman Brothers was 443 basis points, or $443,000 a year for five years, to protect $10 million of debt with credit default swaps. After Lehman Brothers announced a fall in revenue but beat fearful expectations, its credit default swaps traded at 330 basis points according to Phoenix Partners. One analyst said the bank's position appeared "survivable" -- but protecting its debt is pricier than protecting that of Turkey or Nigeria, traders say.

Read more: http://www.reuters.com/article/businessNews/idUSL1859366220080318

[DBoon]

1. "Some poor countries better managed than Wall Street banks"

there, I fixed the headline for you

[aquart]

2. If this wasn't a disaster for us, I would be laughing.

Remember when they used to say, "Safe as houses"?

[snot]

3. Bec. guess what: checks & balances just as lacking; hence corruption. nt