Last weekend the US damaged economy had to deal with a new severe blow. Merryll Lynch was sold to the Bank of America for $29 a share at a value of $50 billion. Meanwhile, Lehman Brothers faces the bankruptcy after failing in its attempt to find potential buyers.
The Federal Reserve board announced on Sunday several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities.
It is the worst economic slump in postwar history. The credit crunch sent companies scrambling for funds. Lehman's (the fourth-largest U.S. investment bank) debts was noted at $668.6 billion (Morgan Stanley, with $1 trillion, and Merrill Lynch, with $988 billion.) The bail-out package for the Lehman was broken down and it has filed for Chapter 11 bankruptcy-court protection. The USD was depreciated against all the majors. Meanwhile the stock markets plunged across the board. As Investors sought to hedge against Lehman's collapse, U.S bonds prices went up.
In-Depth Analysis
- · U.S Market Update by TradeTheNews.com
- · The Ultimate Wall Street Nightmare by Money and Markets
- · Mid-Day Forex Technical Report - Yen Dominates after Wall Street Meltdown by ActionForex.com
- · Daily Market Report - Yesterday marked one of the most pivotal days in Wall Street history by Wachovia
- · Daily Analysis - Dollar falls as Lehman files for Bankruptcy by Finotec Group Inc.
- · Daily Currency Market Focus - Lehman's Latest Developments Spell Big Trouble for Carry Trades and US Dollar by Kathy Lien, GFT (Global Forex Trading)
- · Flash Comment - USA: Lehman files for bankruptcy by Allan von Mehren, Danske Bank A/S
- · Australian Dollar special report - Lehman Gold AUD by FxMax
- · Sunrise Market Commentary - US Treasuries: safe haven in turbulence by KBC Bank
- · No Bailout for Lehman as Fed Awakens to Bond Market Crash Risk by Marketoracle.co.uk
Related News
- · Bank of Canada injections now total C$1.89 billion by Thomson Financial News
- · FXNEWS-Bank of Canada injects C$895 mln into market by Thomson Financial News
- · WRAPUP 3-Central banks labour to calm markets in Lehman storm by Thomson Financial News
- · FXNEWS-Most likely scenario in FX after Lehman by Thomson Financial News
- · ECB's Tumpel says crisis deepened by too much faith by Thomson Financial News
- · Lehman woes part of 'serious crisis'-Germany's Glos by Thomson Financial News
- · Financial Crisis Less Serious Than 1929 -Economist Stiglitz by Dow Jones
- · IMF to provide financial support when needed-chief by Thomson Financial News
- · Lehman liquidation to pressure capital ratios: analysts (Thomson Financial News)
- · TREASURIES-Extend rally on Lehman, yields at 5-mth lows (Thomson Financial News)
- · EU: confident right response to Lehman to be found (Thomson Financial News)
- · Obama: financial crisis a major threat to economy (Thomson Financial News)
- · Trichet: Price Stability Is Prerequisite For Financial Stability (Dow Jones)
- · Lehman Brothers comments from Bankruptcy Court Filings (Thomson Financial News)
- · Lehman woes take sterling to 2-wk high vs battered dlr (Thomson Financial News)
- · World's central banks move to calm Lehman storm (Thomson Financial News)
- · FOREX-U.S. dollar slides as Lehman talks falter (Thomson Financial News)
- · BOE Says Monitoring Sterling Money Markets Carefully (Dow Jones)
- · Lehman to file for bankruptcy, plans to sell units (Thomson Financial News)
- · WRAPUP 7-Wall Street shaken by Lehman failure, Merrill sale (Thomson Financial News)
- · FOREX-Dollar hits 2-mth lows near 105 yen (Thomson Financial News)
- · Lehman Brothers Holdings says filing for Chapter 11 bankruptcy (Thomson Financial News)
Blogs
- · Trade Setups - Little Jonny wants to play in the park not on the main road by Phil Newton
- · The Market Readings: This is market − expected volatile moves seen for week beginning by Dr. S. Sivaraman
- · The Advisor Blog - Another volatile week ahead by Valeria Bednarik
- · 1st on Forex -9pm Sunday - Do you know where your money is? by Jerry Furst
