Financial turmoil continues

Here’s a quick summary of what’s happened recently in rough order.

  • Barclays & Bank of America withdraw from Lehman buy.
  • US Government refuses to help Lehman.
  • Lehman files for bankruptcy protection.
  • Bank of America buys Merrill Lynch for $50bn valuing latter at $29/share (1.8x actual value).
  • US Government rescues AIG by offering an $85bn loan package for 80% public stake in firm.
  • Barclays buys Lehman’s core assets for $1.75bn and ponders taking on Lehman staff.
  • Lloyds TSB buys ailing HBOS for $12bn at 232p/share.
  • Morgan Stanley receives merger interest from Wachovia and others.

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