FOURTH LARGEST US INVESTMENT BANK LEHMAN BROTHERS FILES FOR BANKRUPTCY

…And the global financial crisis deepens. Can it get any worse? 

Soon I might need to think seriously about getting a second job!

Via BBC News

The fourth-largest investment bank in the US, Lehman Brothers, has filed for bankruptcy protection, amid a growing global financial crisis.

Lehman had incurred losses of billions of dollars in the US mortgage market.

The move threatens to deal a further blow to the global financial system, as banks unwind their deals with Lehman.

Merrill Lynch, also stung by the credit crunch, has agreed to be taken over by Bank of America in a dramatic weekend of events for Wall Street.

Its impact is being felt around the world: 

Stock markets and the US dollar have tumbled in reaction to Lehman’s collapse, with banking shares hardest hit. UK bank HBOS saw its shares plummet 30%.

Central banks have moved to reassure markets. The US Federal Reserve has broadened its emergency lending scheme and the UK and European central banks have injected a total of $39bn (£22bn; 28bn euros) into the financial system.

There are fears AIG, once the world’s largest insurer, could also face collapse. It is taking steps to raise money amid reports it is seeking a $40bn emergency loan from the Fed.

Bank of America’s move to buy Merrill in a $50bn deal means that three of the top five US investment banks have fallen prey to the sub-prime crisis within six months.

In the UK, accountants PricewaterhouseCoopers have been appointed as administrators for Lehman.

Continue Reading….

2 replies »

  1. And to think…

    There are people out there that would vote for McCain/Palin amidst all this nonsense.

    Their party (ala G. Dubya) got us here, what with all the focus on the false, immoral war in Iraq.

    The real terrorists are in Afghanistan. EVERYONE knows this.

    It’s all about the oil, Ladies and Gents~!

    *steps off soapbox*

Follow MAD NEWS UK on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow me on Twitter

Instagram

Instagram

Archives

September 2008
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
%d bloggers like this: