Lehman Workers Clear Desks, Weep After Bankruptcy: Lehman Brothers Holdings Inc.'s employees worldwide are clearing their desks, waiting to hear if they'll be paid, and starting to look for work after the investment bank filed for the biggest bankruptcy in history.
Wake-Up Call: Lehman's Mortgage Marks: Anyone else holding large amounts of tainted mortgages has to worry. Lehman's potential unwinding, along with any aggressive actions by Merrill and AIG to offload mortgage assets, could mean widespread losses as other banks mark down their own holdings.
10 Banks Form $70B Fund to Stave Off Crash: Ten of the world's largest banks have formed a massive liquidity fund to mitigate the effects of the Lehman Brothers meltdown, reports the Financial Times. All the investment banks will be able to borrow up to a third of the $70 billion fund in order to reduce volatility and stay in business while Lehman is being wound down. They will also be able to borrow from the Fed under newly relaxed terms
S&P cuts BofA rating, may cut again, Moody's may cut: Moody's Investors Service also placed the bank on review for downgrade after it said it will purchase Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) for $50 billion.
China Cuts Rates as U.S. Turmoil Adds to Global Risks: China cut interest rates for the first time in six years and allowed most banks to set aside smaller reserves as worsening credit-market turmoil and weakening export demand dimmed the outlook for economic growth.
The next big bang is private equity: Wall Street is in crisis, undoubtedly the worst in history, as one tarnished giant after another topples. The real problem, though, is no one can tell where it will end.
Wilbur Ross: Possibly a Thousand Banks Will Close: In an exclusive interview with CNBC.com, Wilbur Ross, chairman and CEO of WL Ross & Co., says he sees possibly as many as a thousand bank closures in the coming months.
Industrial Production in U.S. Fell More Than Forecast: Industrial production in the U.S. fell in August by the most in almost three years as the slowdown in consumer spending prompted automakers to cut back.
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