One of the largest investment banks in the US, Lehmen Brothers Holdings Inc filed for bankruptcy today. This spells bad news for the stock markets around the world, as many of these financial giants are finding it hard to cope with this years credit crunch. The other to succumb already are Bear Stearns and Merril Lynch.
Merrin Lynch however is expected to be bought over by BOA for something in the range of $50billion. Lehman however, were forced into liquidation as a result of Barclays Plc and BOA withdrawing their take over bid.
This is obviously going to affect other financial instituitions and individuals who relied on Lehman for financing. So expect prices to drop in the next few weeks!
Lehman Brothers was the biggest underwriter of mortage backed securities.
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