The Wall Street has been in a turmoil as it is dealing with the largest shakeup after great depression. One of the biggest investment banks has gone bankrupt, one has been sold, financial market is reeling and the country’s biggest insurance company is facing the risk of disaster. Last weekend, two of the biggest Wall Street companies were near collapsing as today, one has gone bankrupt and other one has barely managed to survive. Markets around the world including the New York market are reeling from the news that Lehman Brothers, the stalwart of the Wall Street have gone bankrupt without even a bailout from the government like the Bear Stearns.
Michael Bloomberg, the Mayor of the New York City said that federal government is not able to save all failing companies and giving them a try is just worthless. Merrill Lynch, another firm, just managed to survive as it sold out to the Bank of America. As the investors are worrying, the two companies have told them that when the chips will fall, they will come to the top position. CEO of Merrill Lynch, John Thain said that it is not going to get better in the near future and they are likely to get a better position than they do now. The latest collapse of the Wall Street from the risky sub-prime loans left some of the investors quite unhappy. US President George Bush also admitted that today is painful and said that they are working out to reduce the disruptions and minimizing the impact of such developments on the nations’ broader economy. But just banks are not in trouble, the largest insurer of America, AIG, also needs loan of nearly $ 40 billion within this week. The governor of New York is giving it an approval to give it security with billions of assets from the subsidiaries
