'We are down to brass tacks' – Jack Pringle reacts to Wall Street crisis
Pringle said that the demise of Lehman and the sale of fellow US institution Merrill Lynch to the Bank of America ‘underscored the pessimism’ of the last six months, and warned that other big organisations were fast running out of liquidity and ‘were going to the wall’.
Speaking to the AJ, the founder of practice Pringle Brandon said: ‘The market is going to reel for a couple of months and we will have to see how this settles down.
‘This is definitely not good – in capital letters. We are down to brass tacks.’
He added: ‘As I predicted back at Christmas, it has taken until the third quarter for the credit crunch to really unravel.
’People at the risky end of the market are either going down or being bought by the conservative end.’
It is understood that confidence in Lehman, a 158-year-old investment bank and the fourth largest in the States, evaporated last week over concerns about the organisation’s large portfolio of mortgage-backed assets.