Pro Farmer Editors
This week is shaping up to be another one of turmoil and uncertainty for the financial world. As the week begins, the market has to digest several key events:
- Lehman Brothers is expected to file for bankruptcy after failing to find a buyer. Two firms had been interested in acquiring Lehman, but backed away over the weekend. And with government officials warning the industry they won't provide a bailout as they did with Bear Stearns and Fannie Mae/Freddie Mac.
- Merrill Lynch has agreed to sell itself to Bank of America. The latter was in the running to potentially acquire Lehman, but balked at taking on real-estate debt link to Lehman.
- Insurer American International Group Inc., (AIG) is pulling together a plan that could include it selling off some of its most valuable assets and going to the Federal Reserve for help.
Clearly, the impacts of these developments will unfold over the course of the week and already stock futures were pointed lower in anticipation of the opening bell on Wall Street this morning. Overseas markets were also weaker on the Sunday developments.