Updates from world of business…

Finally relieved, as my end terms are over and did somewhat better than expected, except one or two subjects!!! In my last post, I posted about Rakesh Jhunjhunwala story. Today I am posting about how SENSEX has grown from 1991 from where our country’s growth started. But before that, very important updates from world of the business.

Lehman Brothers Holding Files for Biggest Bankruptcy

Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the sub prime mortgage crisis it helped create in the biggest bankruptcy filing in history.

The 158-year-old firm, which survived railroad bankruptcies, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan yesterday. The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.'s insolvency in 2002 and Drexel Burnham Lambert's failure in 1990.

Lehman was forced into bankruptcy after Barclays Plc and Bank of America Corp. abandoned takeover talks yesterday and the company lost 94 percent of its market value this year. Lehman shares dropped 81 percent in Frankfurt trading to 75 cents from their $3.65 close in New York on Friday.


Bank of America to buy Merrill for $29 a share

Bank of America Corp will acquire Merrill Lynch & Co Inc for $29 a share, for about $50 billion as the credit crisis claimed another of America's oldest financial companies. A deal that will give the bank the world's largest brokerage and a sizable investment bank, the Wall Street Journal reported on Sunday.

Bank of America will pay $29 a share for New York-based Merrill in stock, 70 percent more than the Sept. 12 closing price, the company said in a statement today. Merrill, battered by $52.2 billion in losses and write downs from sub prime-mortgage- contaminated securities, has plunged more than 80 percent from its peak of $97.53 at the start of last year.
The takeover ends 94 years of independence for Merrill and gives Charlotte, North Carolina-based Bank of America a sales force with 16,690 brokers who manage $1.6 trillion for customers.

Rupee falls to 46 per dollar; at two-yr low

The Indian rupee on Monday dipped to a two-year low of 46 against the US dollar following heavy demand from importers for the greenback.

The rupee fell by 25 paise to 46, a level last seen on September 29, 2006, against the US dollar in early trade.


Oil prices tumble below $93

Oil prices plunged below USD 93 a barrel on Monday, reaching the lowest levels since February, on the prospect of weaker demand for energy amid a worsening global financial crisis in the wake of Lehman Brothers' bankruptcy, analysts said.

Brent North Sea crude for delivery in October tumbled by more than USD four to USD 92.84 a barrel.

Market Story

It was a historic day today as global markets went into a tailspin following a US financial meltdown. Lehman Brothers filed for bankruptcy and Merrill Lynch was sold to Bank of America. The US financial turmoil had European and Indian markets reeling. Some of the Asian markets were closed today so the cuts were not deep there. The Indian market saw some recovery in the last hour of trade. Sensex shut shop at 13531, down 469 points and Nifty is at 4072, down 155 points from the previous close.


Sources…
Rediffmail.com
Bloomberg.com
TOI


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