The Daily Parker

Politics, Weather, Photography, and the Dog

Feels like September. 1929.

AIG is about to die; Lehmann won't survive the night; and now, Bank of America has agreed to buy Merrill Lynch. Today has been one of the most frightening days on Wall Street since...well, you know:

Coming just a week after the government took control of mortgage lenders Fannie Mae and Freddie Mac, the magnitude of the industry’s reshaping is staggering: two of the most powerful firms on Wall Street, Merrill Lynch and Lehman, will disappear.

The weekend's once unthinkable outcome came after a series of emergency meetings at the Federal Reserve building in downtown Manhattan in which the fate of Lehman hung in the balance. In the meeting Federal Reserve officials and the leaders of major financial institutions were trying to complete a plan to rescue the stricken investment bank.


Merrill's chief executive, John A. Thain, and Kenneth D. Lewis, Bank of America’s chief executive, initiated talks on Saturday, prompted by the reality that a Lehman bankruptcy would ripple through Wall Street and further cripple Merrill Lynch, people briefed on the negotiations said.

And who may we thank for the seven-year free-for-all that has brought our financial system to its knees? Who was in power? The Greedy Old Party, perhaps? Hmmm....

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