This essay is a 1,000-word essay about the second year of high school. The title is: "American Financial Crisis". Everyone is welcome to contribute.

EVEN by the standards of the worst financial crisis for at least a generation, the events of Sunday September 14th and the day before were extraordinary. The weekend began with hopes that a deal could be struck, with or without government backing, to save Lehman Brothers, America's fourth-largest investment bank. It ended with Lehman's set for Chapter 11 bankruptcy protection and the bank preparing to wind itself up after those efforts failed. Other vulnerable financial giants scrambled to sell themselves or raise enough capital to stave off a similar fate. Merrill Lynch, the third-biggest investment bank, sold itself to Bank of America (BofA), an erstwhile Lehman suitor, in a $50 billion all-stock deal. American International Group (AIG) brought forward a potentially life-saving overhaul and went cap-in-hand to the Federal Reserve.

Even by the standards of the worst financial crisis in at least a generation, the financial crisis last Saturday and Sunday The events of September 14th were still extraordinary. The weekend began with the prospect that a deal to rescue Lehman Brothers, the fourth-largest U.S. investment bank, could be reached, with or without government support. However, it ended with Lehman Brothers filing for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Act after all efforts failed. Other fragile financial giants have struggled to sell themselves off or raise enough capital to avoid the same fate as Lehman. Merrill Lynch, the third largest investment bank, sold itself to Bank of America, the former acquirer of Lehman, in a $50 billion full stock exchange transaction. American International Group (AIG) is proposing a potential rescue plan and is deferentially following the Fed's lead.

On Sunday night the situation was still fluid, with bankers and regulators working to limit the fallout. They were girding themselves for a dreadful Monday in the markets. Australia?s stockmarket opened sharply lower on Monday (most other Asian bourses were closed). American stock futures were deep in the red too, and the dollar weaker. Spreads on risky credit, already elevated, widened further.

On Sunday night, the situation remained very unclear. Bankers and regulators are working hard to reduce the fallout from the incident. They are preparing for a very bad "Black Monday". Australian shares opened sharply lower on Monday (most other Asian stock exchanges were suspended). U.S. stock index futures fell sharply, while the dollar exchange rate also fell. Spreads on already high credit risks become even higher.

Useful words and sentences:

American finance American finance

Nightmare on Wall Street Nightmare on Wall Street

A weekend of high drama reshapes American finance A dramatic weekend reshaped the U.S. financial system

The takeover of Merrill leaves just two large independent investment banks in America, Morgan Stanley and Goldman Sachs. The next two big independent investment banks? Morgan Stanley and Goldman Sachs.