It's like a "my bankers went to the pig trough and all i got what this lousy hundreds of billions and possibly trillions in debt", T shirt. Make sure your bank is FDIC. they are expecting at least another 200 banks to shut down. If it is not fdic insured and your money is in it, you are up shit creek.
NEW YORK - In a stunning reshaping of America's financial landscape, two venerable Wall Street firms fell from the shock waves of a credit crisis that has plunged the financial system into turmoil, as stocks tumbled across the globe Monday in response.
Lehman Brothers, a 158-year-old bank burdened by $60 billion in soured real-estate holdings, filed for federal bankruptcy protection in U.S. Bankruptcy Court after attempts to rescue firm failed. Bank of America Corp. said it is snapping up Merrill Lynch & Co. Inc. in a $50 billion all-stock transaction.
Stock markets fell precipitously and Treasury bond prices soared as investors reacted to some of the most dramatic economic news in modern U.S. history. The Dow Jones industrial average fell 300 points, though the market's initial losses were not as steep as some investors had feared.
The developments took place as U.S. voters, who rank the economy as their top concern, prepare to elect a new president in seven weeks. Presidential candidates John McCain, a Republican, and Democrat Barack Obama, immediately called for stricter financial regulation.
Obama called the news "the most serious financial crisis since the Great Depression" of the 1930s.
President George W. Bush meanwhile signaled that the government would not continued to bail out financial market developments on the broader economy.", saying only that "we are working to reduce disruptions and minimize the impact of these
"The policymakers will focus on the health of the financial system as a whole," Bush said during the White House appearance with visiting Ghanian President John Kufuor.
The demise of the independent Wall Street institutions comes six months after the collapse of Bear Stearns and 14 months after the beginning of the credit crisis, sparked by bad mortgage finance and real estate investments.
Ominously, American International Group Inc., the world's largest insurance company, was asking the Federal Reserve for emergency funding and planned to announce a major restructuring Monday
A global consortium of banks, working with government officials in New York, announced a $70 billion pool of funds to lend to troubled financial companies. The aim of the bank consortium, according to participants who spoke to The Associated Press, was to prevent a worldwide panic on stock and other financial exchanges.
Ten banks — Bank of America, Barclays, Citibank, , Deutsche Bank, Goldman Sachs, , Merrill Lynch, Morgan Stanley and UBS — each agreed to provide $7 billion "to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."
The Federal Reserve also chipped in with more largesse in its emergency lending program for investment banks. The central bank announced late Sunday that it was broadening the types of collateral that financial institutions can use to obtain loans from the Fed.
Shock waves hit Wall St. as 2 big firms fall - Yahoo! News