Lehman Brothers, the 4th largest investment bank in the world has folded. Close on the heels of the virtual metldown of Fannie and Freddie, the mortgage giants; this is another blow to the Financial markets.
The losses for Lehman Brothers was in billions of dollars.
Also, Merrill Lynch has “agreed” to be taken over by Bank of America for $50 bn. Over the last year it has written down more than $40 bn assets.
Meanwhile AIG is in doldrums as well! Its shares have plummeted 42% and its losses are now to the tune of $18.5 bn over the last 3 quarters.
Until recently, AIG was the world’s largest Insurance company, and it is on the verge of folding as well.
Meanwhile, Washington Mutual is already on probation. Its CEO was thrown out as well.