Going into the weekend, it looked like Bank of America was poised to save the failing Lehman Brothers. In an interesting dramatic twist, Lehman Brothers will file for bankruptcy while Bank of America will buy Merrill Lynch for $50 billion in stock.
After the deal, Bank of America will be managing assets of $2.5 trillion.
The two events may offset each other and limit any potential collapse of the stock market today. Today’s big question, something that will affect today’s market, is whether Washington Mutual will have its own savior. The Dow is already down 340 points.
For some interesting thoughts on the matter, take a look at the comments on this article at BoingBoing.