Away from the Fannie and Freddie spectacle, investment banks are still struggling with their own little issues. The most psychically challenged is Lehman, where there's speculation that the 'good bank/bad bank' solution (which is starting to look like the only one on the table) could leave 10,000 of its 25,000 global employees in need of new employment (Sunday Times).
Lehman's trading businesses valued at close to zero (Bloomberg).
RBC considered buying Lehman two months ago, decided to give it a miss (Financial Times).
And...Jeremy Isaacs is quitting Lehman, allegedly out of pique after not being made president (Telegraph).
Calyon is also said to be mulling the elimination of 1,200 employees in New York and London. All will become clear on Wednesday (Reuters).
The real news, however, concerns Fannie and Freddie: 'an event of profound significance for the global economy, since these two eccentric institutions own or guarantee almost 3,000bn of US mortgages' (BBC).
Henry Blodget's explanation of the Fannie and Freddie 'Conservatorship' (BusinessSheet).
This is no longer the worst mortgage crisis since the Great Depression; this is the worst mortgage crisis, period....the US government could become akin to the single largest hedge fund on the planet (HousingWire).
A full 50% of all US houses are now owned by the US government, the programme will enable us to install surveillance equipment in the homes of US citizens, this will ensure citizens vote Republican in the US presidential elections... (Fintag).
Winners and losers from the bailout (Wall Street Journal).
Pay for financial services 'executives' rose 8.5% last year, faster than in any other sector (Telegraph).
Mega-banker Moelis opening a London office (Telegraph).
The 50 best places to launch a career in 2008 (BusinessWeek).
Rattling dog had eaten 13 golf balls (Guardian).
Women scientifically proven to find Maserati, Lamborghini and Ferrari drivers more attractive (Wired - courtesy of Alphaville).