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EVENT:
Lehman Brothers today declared it would seek Chapter 11 bankruptcy protection from its creditors.
SIGNIFICANCE:
Facing an intensifying liquidity crisis Merrill Lynch yesterday agreed to be acquired by Bank of America in a reported 50 billion dollar deal, while Merrill's Wall Street peer Lehman Brothers is headed for bankruptcy and liquidation. The US Treasury and Federal Reserve refused to backstop either faltering institution, signalling a new, dangerous phase of the global credit unwind.
Word Count (approx): 1243
Headings
- Immediate crisis
- Regulatory response
- Spreading contagion
- Flight from risk
- Back to basics?
- Shadow banking?
- Coordinated response?
- Wither recovery?
Primary Keywords: INT, International, United States, economy, banking, derivatives, finance, regulation
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