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.
JPMorgan Chase and Federal Reserve Bank of New York agreed to provide emergency financing to cash-strapped brokerage Bear Stearns, for up to 28 days.
Bear Stearns said the move would allow it to continue normal operations. Bear Stearns is Wall Street’s 5th largest investment bank.
Bear Stearns news scattered investors, pushing the Dow Jones industrial average down more than 250 points at one point in the morning.
New York Governor Eliot Spitzer, resigned yesterday amid a scandal over a $1,000-an-hour prostitute after the New York Times broke a story “A Fall From White Knight to Client 9”
Spitzer, 48, stepped down after the New York Times reported he was “Client 9” of an international call-girl ring whose operators were charged with crimes last week.