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...practice of betting on a stock's fall without first borrowing shares. But that did nothing to quell widespread speculation about which struggling financial institution would be the next to disappear. British bank Lloyds was in talks to buy beleaguered U.K. mortgage lender HBOS. Washington Mutual, the U.S.'s largest thrift, put itself up for auction, and Wells Fargo and Citigroup might be interested, according to reports. Morgan Stanley appeared to be on the table too. There were murmurs the investment bank was holding conversations with Charlotte-based bank Wachovia. Chinese conglomerate Citic Group, owner of China Citic Bank...

Author: /time Magazine | Title: Can Morgan Stanley and Goldman Sachs Go It Alone? | 9/18/2008 | See Source »

There's a furious argument over whether shorts hastened the demise of Lehman and AIG, cutting the off their oxygen when it was desperately needed. And some have laid the blame at the feet of SEC commissioner Cox. "Chris Cox is responsible for the largest destruction of wealth in U.S. history," hissed Mad Money maestro Jim Cramer on his CNBC show on Tuesday. "Because of Cox, the shorts won." (Republican nominee John McCain called Thursday for Cox to be fired - the same Cox some conservatives touted as a possible running mate earlier this year. President Bush said he fully supports...

Author: /time Magazine | Title: Are Short Sellers to Blame for the Financial Crisis? | 9/18/2008 | See Source »

...notable not because he deviates from Harvard’s social norms but because carries them to their logical extremes. The father of Diamond is not a rebel so much as the archetypal Harvard Man, right down to his professed love of two of Harvard’s largest classes, Justice and Positive Psychology. His self-authored biography reads not like a dissident’s manifesto, but instead sounds vaguely like a bizarre college essay or cover letter, establishing his academic, athletic, and extracurricular credentials. Di Pasquale is, in many ways, the ultimate representative of a Harvard culture obsessed...

Author: By Daniel E. Herz-roiphe | Title: A Diamond in the Buff | 9/18/2008 | See Source »

With over 4,000 agents and 2 million policies in force in Singapore (population 4.6 million), AIG is one of the city's largest insurance operators. Its pervasive presence underscores the global reach of the U.S. financial companies that have been torpedoed by the subprime crisis - and the worldwide consequences of an unfolding crisis of confidence among their customers and business partners. The Monetary Authority of Singapore, the city's financial regulator, stated that the financial resources of AIA currently met its requirements - an attempt to assure the public that there was no reason for panic. But after the failure...

Author: /time Magazine | Title: Wall Street Meltdown: Global Fallout | 9/17/2008 | See Source »

...blistering heat - as well as assurances from its general manager Mark O'Dell, that the company has "a strong, well-positioned business in Singapore." With over four thousand agents and two million policies in force in this city-state of 4.6 million, AIG is one of Singapore's largest insurance operators. Its pervasive presence in the small nation underscores the insurance giant's global reach - and the global consequences of an unfolding failure of confidence by its far-flung customers. That reach was one of the key reasons why the U.S. government appeared to reluctantly agree to an AIG bailout...

Author: /time Magazine | Title: AIG Bailout Spooks Customers Around the World | 9/17/2008 | See Source »

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