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(CEP News) - All eyes are on Wall Street Sunday night after it was announced that Lehman Brothers was preparing bankruptcy papers, despite speculation that Barclays or Bank of America would save the suffering financial institution.
The U.S. government did not come forward to help either. Sherry Cooper, strategist with BMO Capital Markets said "after the U.S. government bailout of Fannie Mae and Freddie Mac last week, "politically, taxpayer support for Lehman or other financial firms, has reached its limit." Meanwhile, Merrill Lynch & Co. was reported to have been in talks to sell itself to Bank of America for $44.3 billlion. In an interview with CNBC, former U.S. Deputy Treasury secretary Roger Altman said that with Lehman set to claim bankruptcy and Merrill forced to sell itself, the U.S. economy is entering a dangerous place. He said these events will cause a further withdrawal of credit from the U.S. economy, and that we've not seen the end to this crisis. By Megan Ainscow,
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