The United States faces the possible collapse of Wall Street giant Lehman Brothers as negotiations fail to spur any successful bids for the crippled investment bank.
According to The Australian, Britain’s third largest bank Barclays, pulled out of negotiations overnight due to concerns that it would have to guarantee Lehman’s trading commitments until a deal was finalised.
And a consortium bid led by Bank of America is also reportedly under threat as the US government refuses to offer any guarantee for Lehman’s losses.
If no deal is made, it is likely Lehman could be placed into liquidation before the day is out, making it one of the largest financial failures in history, and a significant threat to the health of the US economy.
Should the US government bail out failing banks? What should the federal government do should an Australian bank face the same fate? COMMENT HERE
Bank overhaul announced as Lehman posts huge Q3 loss 11-09-08
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