Sunday, September 14, 2008

WSJ.com - Crisis on Wall Street as Lehman Totters, Merrill Seeks Buyer, AIG Hunts for Cash

 
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The American financial system was shaken to its core on Sunday. Lehman Brothers Holdings Inc. faced the prospect of liquidation, and Merrill Lynch & Co. was close to a deal to sell itself to Bank of America Corp.

The U.S. government, which bailed out Fannie Mae and Freddie Mac a week ago and orchestrated the sale of Bear Stearns Cos. to J.P. Morgan Chase & Co. in March, played much tougher with Lehman. It refused to provide a financial backstop to potential buyers.

 
   
   
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WSJ.com - Crisis on Wall Street as Lehman Totters, Merrill Seeks Buyer, AIG Hunts for Cash* This article will be available to non-subscribers of the Online Journal for up to seven days after it is e-mailed.
     
 
 
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