Financial Soap Opera

I have been following my own version of “an intense, fast paced soap opera.” It has the same or higher level of excitement, intense storyline, has gigantic and magical proportions, has a global audience, and most importantly it’s not make believe. Whatever’s happening, bad twists and good ones are real. Trust Wallstreet to stage its own show and it would leave the world gasping for breath.

I was first exposed to this popular “street” when I was in grade school, watching some popular 1980’s flicks about the things that happen in Wallstreet. Because of its popularity, Hollywood even managed to make a film self-titled plainly as Wallstreet starred by Michael Douglas and Charlie Sheen. But I like Trading Places, Working girl and Bonfire of Vanities better. Later on, I began to read to Susan Howatch’s novel “The Rich are different.”

When I was a child, when I hear the word Wallstreet, the words that I would immediately think off are: Complicated, rich, men, business, suits, New York, Tom Hanks. Actually, most of these words that I’ve associated are true. It’s in New York and it houses the global and powerful corporations, garnering its term as the financial powerhouse of the world. According to history, it’s the first permanent house of the New York Stock exchange as it evolved into a geographic community of global and financial corporations. A company has never really reached the highest financial status, if not one representation, is housed in this popular “community.”

Some of the drivers of this community are the global financial corporations that we highly respect like Citigroup, Merrill Lynch, Goldman Sachs, JP Morgan etc. These are giants that are experts in making money and sustaining money. NO one knows investments and money like they do, but the recent and ongoing financial crisis fueled by the credit crunch and sub prime disaster made, the once invincible community, fall down on their knees and hold on to each other. Their blows, wounds and demise shook the whole financial world and changed people’s lives globally. It is quite alarming since these financial corporations, where we entrust our money with, should be strong firms secured with capital and not institutions filing for bankruptcy.

But just like any Soap operas, certain evils come to destroy the protagonists while certain twists and turns tend to make viewers gasping. Some are victims and some emerge as White Knights that play heroes to the story. Just like this new chapter that will go down to history today. “Stunning Fall for Main Street’s Brokerage Firm” reported by NY Times tells the story of Merrill Lynch, the American nation’s largest brokerage firm and a global financial name as it surrenders to Bank of America for USD 50.3 Billion in Stock. John A. Thain, CEO of Merrill Lynch, decided to sell after billions of losses.

In some points, one should be happy as it was salvaged and acquired by BOA, yet employees of Merrill Lynch, most of whom are not yet sure if they are going to be absorbed by the new plantilla of BOA, feel sad because Merrill Lynch has always been independent and powerful. It was a soap opera of sorts since the people have always stood by the pillars of hope. A company as powerful and big as Merrill Lynch, which even “surpassed USD 1 trillion in client assets under management in 1990’s,” has always steered clear from being deathly. They tried their very best to keep afloat and fight back despite billions of losses. Top executives even managed to attend recent town hall meetings to address the concerns of employees, and told them that Merrill Lynch’s capital base was stable and assets were being managed. They even set a brighter vision for 2009. Little did they know that the company wouldn’t even reach Christmas.

The twists and turns, the fall of a giant and the surge of emotions bested the usual soap operas. This is primetime and real time as it gets. Aside from some employees losing their jobs, there’s also a sense of failure and hurt for the company. Sometimes it’s not just about the money, but affiliations as well.

Aside from Merrill Lynch however, the skies are not opening up for Lehman Brothers, another company, far worse than Merrill Lynch, which was looking for their White Knight last weekend. No one came; and they ended up facing an agonizing death with a capital B for Bankruptcy. The 158 year old Investment bank, once a powerhouse and the most respected, now gears for liquidation.

Every company in Wallstreet is tightening their belts and playing the “wait and see game.” Compared to what I’ve watched in past movies before, Wallstreet is not that glorious as it used to. Although, like in any other soap operas, the protagonists will always come out with a vengeance and ultimately achieve a sweeter victory in the end. Like in soap operas, no matter how desperate the situation might be, there is always hope and some drastic turn around. Wall Street as a real Soap opera of our times? Highly Possible.