Lehman Brothers undone by financial Crisis !

LEHMAN BROTHERS SHAKES THE WORLD
MARKET !

Lehman brothers in a debt of Billion of Dollars has a disastrous affect on other financial and Economical Corporations of the world .

Lehman Brothers
declared itself bankrupt on Monday and Wall Street rival Merrill had to be taken over in a new financial earthquake that sent global markets into a slump .
Lehman Brothers said it would file for bankruptcy on Monday after a frantic weekend of negotiations failed to arrange a rescue.

Lehman's slow collapse began as the mortgage market crisis unfolded in the summer of 2007, when its stock began a steady fall from a peak of $82 a share.

The fears were based on the fact that " the firm was a major player in the market for subprime and prime mortgages, and that as the smallest of the major Wall Street firms, it faced a larger risk that large wounded could be deadly.

As the crisis deepened in 2007 and early 2008, the storied investment bank defied expectations more than once, just it had many times before, as in 1998, when it seemed to teeter after a worldwide currency crisis, only to bounce back strongly.

Lehman managed to avoid the fate of Bear Stearns, the other of Wall Street's small fry, which was bought by JP Morgan Chase at a bargain basement price under the threat of bankruptcy.

Lehman and Bear Stearns had a number of similarities. Both had relatively small balance sheets, they were heavily reliant on the mortgage market, and they dependent heavily on the repurchase market, most often used as a short-term financing tool.

But by the summer of 2008 the rollercoaster ride started to have more downs than ups.

Barclays agrees to acquire Lehman Brothers' North American investment banking, and fixed income and equities sales, trading and research operations, including approximately 10,000 employees.

Barclays enter into support agreement with Leehman brothers to provide :

1) $500 million DIP-financing to Lehman Brothers Holdings Inc.
2)A substantial interim credit facility to Lehman Brothers Inc.



Regards,
Jaffer Patel