Lehman Heads to Bankruptcy

By Caroline Miller,  Newser Staff
Posted Sep 14, 2008 8:20 PM CDT
Lehman Brothers Headquarters in New York City is seen Saturday, Sept. 13, 2008. Late Friday, the Federal Reserve Bank of New York held an emergency meeting with top Washington policymakers and major...   (AP Photo/David Karp)
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(Newser) – After what the New York Times calls one of the most extraordinary days in Wall Street history, Lehman Bros, the nation's fourth largest investment bank, is expected to file for  bankruptcy protection. The withdrawal of both Bank of America and Barclays today removed the last hope to avoid the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago, the Times notes.

Lehman will file to protect the parent company, as a consortium of banks provides a financial backstop for liquidating the 158-year-old banks holdings. The company has hired same firm that managed Drexels' bankruptcy filing, the Times reports.