Wall Street’s Fears on Lehman Bros. Batter Markets
By JENNY ANDERSON and BEN WHITE
NYT
Only days after the Bush administration assumed control of the nation’s two largest mortgage finance companies, Wall Street was gripped by fears that another big financial institution, the investment bank Lehman Brothers, might founder — and that this time, the government might not come to the rescue.
Waves of selling wiped out nearly half of Lehman’s value in the stock market on Tuesday, leaving the firm, one of the nation’s oldest and largest investment banks, in an all-out fight for survival.
The plunge fanned worries about the troubles plaguing the broader financial industry and sent the Standard & Poor’s 500-stock index tumbling 3.4 percent. The decline more than wiped out the market’s rally on Monday, when stocks surged after the weekend rescue of Fannie Mae and Freddie Mac, the government-chartered mortgage giants.
Lehman’s future as an independent firm now seems more uncertain than ever, and many analysts fear that the bank is running out of time and options.
Confronting gaping losses stemming from the credit crisis, the once-proud firm is racing to secure a financial lifeline, possibly including the sale of its prized money management division or an investment from an outside investor.
(Continued here.)
NYT
Only days after the Bush administration assumed control of the nation’s two largest mortgage finance companies, Wall Street was gripped by fears that another big financial institution, the investment bank Lehman Brothers, might founder — and that this time, the government might not come to the rescue.
Waves of selling wiped out nearly half of Lehman’s value in the stock market on Tuesday, leaving the firm, one of the nation’s oldest and largest investment banks, in an all-out fight for survival.
The plunge fanned worries about the troubles plaguing the broader financial industry and sent the Standard & Poor’s 500-stock index tumbling 3.4 percent. The decline more than wiped out the market’s rally on Monday, when stocks surged after the weekend rescue of Fannie Mae and Freddie Mac, the government-chartered mortgage giants.
Lehman’s future as an independent firm now seems more uncertain than ever, and many analysts fear that the bank is running out of time and options.
Confronting gaping losses stemming from the credit crisis, the once-proud firm is racing to secure a financial lifeline, possibly including the sale of its prized money management division or an investment from an outside investor.
(Continued here.)
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