Top American investment bank files for bankruptcy
Lehman Brothers, the fourth largest investment bank on Wall Street, have filed for bankruptcy.
The banks financial collapse will result in over 5,000 UK workers loosing their jobs in the City and at the company’s office in High Wycombe.
The 158-year-old bank had been attempting to organise a rescue package this suffered a blow when its share price slumped to its lowest point on record in September following a spate of panic selling.
Barclays and the Bank of America were heavily linked to taking over the American institution but decided the debt of $613 billion and low share price meant it was not worth the risk.
The collapse of Lehman Brothers follows news that another major Wall Street player, Merrill Lynch, which has already lost $40 billion this year, is being taken-over by the Bank of America.
The take-over, worth $50 billion, will save the company from having to file for bankruptcy.
This move is seen as an attempt by the American Bank to try and get a handle on the spiralling financial crisis and prevent more financial institutions from going bust.
