NEW YORK, Sept. 15, 2008 - Shares of investment banks tumbled Monday morning as Lehman Brothers Holdings Inc. filed for bankruptcy and Merrill Lynch & Co. brokered a sale to Bank of America Corp.
Lehman Brothers stock was virtually wiped out at the opening bell after the storied investment bank, wracked by the credit crisis and mortgage-backed investments, filed for Chapter 11 bankruptcy protection.
Its shares gave up $3.40, or 93 percent, to 25 cents in morning trading. The stock was trading at a 52-week high of $68.44 in November.
Shares of Merrill were the one bright spot. Under terms of its sale, Bank of America would exchange 0.8595 shares of its common stock for each Merrill Lynch common share. Merrill shares soared $4.86, or 28.5 percent, to $21.90. … Forbes.com
Supplementary: McCain, Obama Confront the Market.