Monday, September 15, 2008

BBC NEWS | Business | Lehman set to go into insolvency

Could this be the beginning of people losing confidence in the financial system and a run on banks not like the world has seen since the Great Depression?

BBC NEWS | Business | Lehman set to go into insolvency: "BBC business editor Robert Peston says Barclays' decision to walk away from a Lehman deal was a huge setback for the effort to rescue the fourth-largest investment bank in the United States.

A source close to the talks told the BBC that Barclays was unlikely to change its mind.

Barclays terminated the negotiations because it was unable to obtain guarantees in relation to financial commitments faced by Lehman when markets open on Monday.

Unless the US government does a U-turn and puts taxpayers' money into Lehman, the bank will have to file for bankruptcy protection."


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