For Immediate Release


Taruna Godric 416-916-5202

The Real News Network

Markets Slammed by Lehman Collapse

Dow drops more than 500 points or 4.5 % as investors panic after Lehman Brothers files for chapter 11

WASHINGTON - US stocks were slammed on Monday after a stunning upheaval on the Wall Street landscape.

The Dow Jones fell more than 504 points or 4.42 percent, the largest one-day drop since September 2001. This as investors reacted badly to a shake-up of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co. Lehman Brothers, which had 60 billion US dollars in soured real-estate holdings, filed a Chapter 11 bankruptcy petition in court after attempts to rescue the 158-year-old firm failed.

Employees started to clean out their offices in New York on Sunday night. About 26000 Lehman Brothers employees lost their jobs worldwide. Another Wall St. icon Merrill Lynch was snapped up by Bank of America in a 50 billion dollar all-stock transaction in what was essentially a forced sale. Merrill Lynch was said to have 80-plus billion dollars of risky asset exposures.

The disappearance of the two firms could mean the loss of up to 50,000 jobs in the financial sector. That industry has already lost 100,000 jobs since the start of the credit crisis a little more than a year ago.


If you think a better world is possible, support our people-powered media model today

The corporate media puts the interests of the 1% ahead of all of us. That's wrong. Our mission? To inform. To inspire. To ignite change for the common good.

If you believe the survival of independent media is vital to a healthy democracy, please step forward with a donation to nonprofit Common Dreams today:

Doug Henwood of the Left Business Review tells The Real News, "This is an experiment in real time. We just don't know where this is going to go. It could be that this is, you know, the big storm that marks the end of all this. It's very, very hard to read."

Watch the full story on The Real News Network



This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news outlet. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Won't Exist.

Please select a donation method:

Share This Article

More in: