Lehman Brothers files Chapter 11 bankruptcy

[redrumloa]

http://biz.yahoo.com/ap/080915/wall_street.html

New York-based Lehman, founded 158 years ago, said early today that it filed for Chapter 11 bankruptcy protection after failing to find a buyer. Merrill Lynch, 94 years old and also based in New York, agreed to sell itself to Bank of America Corp. for $50 billion in an emergency deal hashed out yesterday.

``The tectonic plates beneath the world financial system are shifting, and there is going to be a new financial world order that will be born of this,'' said Peter Kenny, managing director at Knight Capital Group Inc., the Jersey City, New Jersey-based brokerage that handles about $1 trillion worth of stock transactions a quarter. ``It's an ugly and painful process.''

http://finance.yahoo.com/q/bc?s=LEH&t=5 ... z=l&q=b&c=

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[FluffyMcDeath]

The fallout so far is amazingly benign. Gold is benefiting but oil continues down. The market indices don't seem like they're down but that much considering, but they have already been beaten down a fair way.

Is this just George Jr. competing with Pappy again? I mean, did Dubya look at the Savings and Loan debacle and decide "I can do better".

 

[FluffyMcDeath]

The trickle down effect - or is it a failure storm - has moved on to its next victim. The stress has now moved to AIG as the system unzips.

But WaMu may have a suitor in JP Morgan.