Disasters Follow

nvestment Bank Lehman Brothers, the 158 year old, fourth largest investment banker in the US declared bankruptcy after concerted efforts for a bailout failed. With total assets of $640 billion, this would be termed as the largest ever bankruptcy filing in history. Insurance company American International Group (AIG), America’s largest insurance company, received $85- billion as a rescue package from the federal authorities which staved off an impending collapse of the company. The bank of America is buying investment bank Merrill Lynch. All three of these companies at the centre of the storm have been damaged by the related mortgage and credit crisis and all three have lost much of their stock market value.