The business world received a shocking news today when Lehman Brothers, a top investment banking powerhouse has filed for a bankruptcy. The 158-year-old New York-based company has more than 24,000 employees worldwide – between 10,000 and 12,000 of them in the city – facing the specter of unemployment.
Former Federal Reserve chief Alan Greenspan described the financial hurricane that has swept away Lehman, Merrill Lynch, Freddie Mac, Fannie Mae and Bear Stearns as “a once-in-a-century event” that can still take down other firms. Mayor Bloomberg put off a trip to San Francisco to help deal with the crisis, since New York City collects a disproportionate share of its revenues from the financial sector.
Lehman’s collapse was expected to send shock waves through Wall Street today, with futures trading late last night indicating a likely drop in the Dow Jones Industrial Average of around 300 points. Stock markets in Japan, Korea, Hong Kong and China are closed for holidays today. A key index in Australia slumped only 1.5 percent last night, giving traders hope that the sell-off may not be so dire