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European shares tumble on Lehman bankruptcy
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by Dave Keating | September 14, 2008 at 11:53 pm
179 views | 14 Recommendations | 2 comments
European markets are not reacting well to the news that Lehman Brothers and Merrill Lynch are filing for bankruptcy and are not going to be bailed out by the US government. Across the continent, the markets are taking a dramatic dive. This does not bode well for Wall Street once the US markets open in five hours.
European stocks tumbled in early trade on Monday after Wall Street firm Lehman Brothers filed for bankruptcy protection, sending fresh tremours into financial markets.
By 0720 GMT, the FTSEurofirst 300 index of top European shares was down 3.1 percent at 1,126.08 points. The benchmark closed 1.9 percent higher on Friday.
Lehman filed for bankruptcy protection, after trying to finance too many risky assets with too little capital, making it the largest and highest-profile casualty of the global credit crisis. Its shares plummeted 84 percent in Frankfurt.
Lehman is one of the biggest investment banks to collapse since 1990, when Drexel Burnham Lambert filed for bankruptcy protection amid a collapse in the junk bond market.
Banks were the biggest weighted losers on the index, with BNP Paribas, Credit Agricole, Dexia, Fortis, Societe Generale down between 6 and 9 percent.
To follow the continuing development as the markets reverberate with the effects of this remarkable development, click here.
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Most RecentMost Recommended Comments (2)
at 00:29 on September 15th, 2008
Dave Keating, I like this story. It's good stuff.
at 05:18 on September 15th, 2008
Dave Keating, I like this story. It's good stuff. I reported this 16 hours ago