Even by the standards of the worst financial crisis in at least a generation, the events last Sunday and the day before were extraordinary. At the beginning of the weekend, people hoped that an agreement to save Lehman Brothers, the fourth largest investment bank in the United States, could be reached with or without government support. Finally, Lehman Brothers applied for Chapter 1 1 bankruptcy protection. After these efforts failed, the bank was ready to close its business. Other fragile financial giants are scrambling to sell themselves or raise enough money to avoid a similar fate. Merrill Lynch, the third largest investment bank, sold itself to Bank of America, the former Lehman acquirer, in a $50 billion all-stock transaction. American International Group (AIG) proposed a potentially life-saving overhaul plan and went to the Federal Reserve.
Even by the standards of the worst financial crisis experienced by at least one generation, the events that happened last Saturday and Sunday were still extraordinary. The deal to rescue Lehman Brothers, the fourth largest investment bank in the United States, which started that weekend, is expected to be reached, with or without government support. However, after all efforts failed, Lehman Brothers filed for bankruptcy protection according to Chapter 1 1 of the United States Bankruptcy Law. Other fragile financial giants are also trying to sell themselves or raise enough funds to avoid the same fate as Lehman Brothers. Merrill Lynch, the third largest investment bank, sold itself to Bank of America, the former acquirer of Lehman Brothers, in a full share exchange of $50 billion. AIG put forward a potential rescue and restructuring plan and respectfully followed the face of the Federal Reserve.
On Sunday night, the situation remained unstable, and bankers and regulators were trying to limit the impact. They are preparing for the terrible Monday in the market. The Australian stock market fell sharply on Monday. American stock futures are also in deep deficit, and the dollar is even weaker. The already high high-risk credit spreads have further widened.
On Sunday night, the situation was still very uncertain. Bankers and regulators are trying to reduce the radiation impact of this incident. They are ready for a very bad black Monday. The Australian stock market opened sharply lower on Monday. American stock index futures fell sharply, and the exchange rate of the US dollar also fell. The spread of already high credit risk has become higher.
American finance
American finance
The nightmare of wall street
A Dramatic Week of Wall Street Nightmare Remodels American Finance
The dramatic weekend reshaped America's financial system.
After the acquisition of Merrill Lynch, there are only two large independent investment banks in the United States, Morgan Stanley and Goldman Sachs.
After the acquisition of Merrill Lynch, there are only two large independent investment banks in the United States, Morgan Stanley and Goldman Sachs.