Collapse of one of the world’s largest investment bank, Lehman Brothers has triggered large stock market falls around the globe. Wall Street has seen its worst day since 2001 amid fears about the stability of the financial system.
158-year-old bank Lehman Brothers, announced it was filing for Chapter 11 bankruptcy in the United States.
Lehman suffered billions of dollars worth of losses in the US mortgage markets and was unable to find an investment partner to rescue.
According to FT report
- The wider index closed down 4.7 per cent at 1,192.96 points
- Dow Jones Industrial Average was down 4.4 per cent lower at 10,917.51 points
- Nasdaq Composite index fell 3.6 per cent to 2,179.91 points
Majority of the Lehman Brothers’s 26,000 staff around the world are expected to lose their jobs.