Lehman Brothers announces bankruptcy as Fed moves to shore up marketsy

The world's fourth largest investment company has announced the filling of chapter 11 bankruptcy in USA.

After the escape from Barclays after 11 hours of rescue work, has become the largest financial firms to fail in the global credit crisis, after federal authorities refused to help other companies to buy venerable investment bank.

Lehman Brothers Holdings Inc. ( "LBHI") announced today that it intends to file a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. None of the broker-dealer subsidiaries or affiliates of other LBHI will be included in Chapter 11 registration and all brokers-dealers will continue to operate. Customers of Lehman Brothers, including its customers daughter, Neuberger Berman Holdings, LLC, may continue to trade or take other measures in relation to their accounts.

Bank of America meanwhile Merill Lynch has purchased about $ 50 billion, creating a new financial giant. In the event that things were not bad enough, AIG now reportedly has asked for $ 40 billion loan from the Government. Washington Mutual remains in the air at this point. The company lost a whooping 92 per cent of its market value last year, but now have a large base of assets and deposits, and now hope that he can do so through the current crisis.

What's Lehman Brothers Next to Go?

Traders fear that the collapse of Lehman will send shockwaves throughout the world and spark a global sell-out of shares. Lehman Brothers Holdings Inc, founded in 1850, has been diversified, global financial-services firms. He has been actively involved in investment banking, equity and fixed income sales, research and trading, investment management, private equity and private banking. It was primary dealer in U.S. Treasury securities market.

Its principal subsidiaries include: Lehman Brothers Inc. Neuberger Berman Inc. Aurora Loan Services, Inc, SIB Mortgage Corporation, a bank Lehman Brothers, FSB, and Crossroads Group. Companies worldwide headquarters in New York City, with regional headquarters in London and Tokyo, as well as offices located throughout world.Tokyo, and operates a network of offices around the world.

World Braced

Stock markets worldwide Braced for after the carnage at the last ditch effort to find a buyer at Lehman collapsed.

As emergency talks on Lehman woes were held in New York, London source at the British bank Barclays, who requested anonymity, said he walked from the negotiations because of problems he will have to guarantee 158 - old U.S. trade firm commitments.

Financial institutions around the world who do business with Lehman Brothers stand to lose billions of dollars.

Sunday was extraordinary trading session in New York, so that they could well some of their positions with Lehman and minimize those losses.

But indications are that stock markets will plummet, when they open later.

Banks unite

Earlier, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley and UBS, said in a joint statement they "began a series of actions to help improve liquidity and mitigate the unprecedented volatility and Other issues affecting global equity and debt markets. "

They agreed to establish a "secured loan facility of $ US70 billion, with each bank contributed $ US7 billion, to facilitate access to credit.

They also said they would work together "in order to facilitate the orderly resolution" on the impact of derivatives between Lehman Brothers and its struggle with the participants.