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Unformatted text preview: S T U D E N TS A SSIG N ED A RT IC L E S U M M ARY Crisis on Wall Street as Lehman Totters, Me r r ill Is Sold, AIG Seeks to Raise Cash Summary: The U.S. government does not provide financial support as to the Bear Stearns this time, makes the potential buyer Barclay and Bank of America walk away from the deal of buying Lehman Brothers. Bank of America turned around to purchase Merrill Lynch. At the same time, AIG has significant cash problem that risk of having downgrade of its credit rating. Analysis: Unlike bailing out Lehman brothers, U.S. government not helping Lehman brother this time does show some inconsistency. On the other hand, the crisis of Bear Stearns was out of the blue, while we know Lehman brother’s problem already prolong several months. As the regulator of the market, U.S. government probably does not care about survival of individual companies but the stability of the entire market. Perhaps the rescue of Bear Stearns prove helping out individual companies would not solve the problem but only delayed the happening of the crisis. would not solve the problem but only delayed the happening of the crisis....
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This note was uploaded on 03/14/2009 for the course ACCT 540 taught by Professor Zhou during the Spring '09 term at Binghamton.
- Spring '09