The credit crisis claimed another victim today as one of the largest US banks, Lehman Brothers announced that it was filing for bankruptcy. The US bank will file for Chapter 11 bankruptcy protection, this will allow the bank to reorganise and make plans for paying creditors off over a period of time.
Lehman Brothers are the latest US bank to feel the effects of the US mortgage crisis, whilst another US bank, Merrill Lynch also affected by the crisis managed to strike a takeover deal with the Bank of America.
Barclays Bank and the Bank of America were in talks with the stricken Lehman Brothers company, but as talks failed over the weekend both banks pulled out of a rescue plan; leaving Lehman Brothers to file for bankruptcy protection.
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