Monday, September 15, 2008
High drama on Wall Street
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

Lehman Brothers has filed for bankruptcy, Merrill Lynch is being taken over by Bank of America and AIG is being helped out by the US authorities. This is the most dramatic turn of events yet in the credit crisis/crunch. Some thought Bear Stearns marked the crisis's low point; others thought - briefly - that the previous weekend's rescue of Freddie Mac and Fannie Mae would draw a line under it. But this one runs and runs, and the markets are spooked, though not yet collapsing. Bloomberg has rolling reports here. The Bank of England has said it stands ready to intervene in the markets if necessary.