The debacle that was Lehman Brothers has sent ripples of anxiety amongst financial institutions throughout the world. The American financial-services giant's collapse, hastened no less by the global financial sector meltdown, is a clear indication that no one, even among the established financial Goliaths, is safe in these trying times. Talks are rife that the next to fall is the American International Group (AIG); hopefully, this crisis is kept in check soon. Otherwise, the outlook would be bleak for the coming year, not just for the financial sector, but, I would guess, across many industries.
The bailout by the US government of AIG is a welcome news, a calming stroke, not only to the already beleaguered company, but to the whole financial industry as a whole. Merril Lynch buyout by the Bank of America was another shocker. And will not be the last, if my crystal ball is right. These are very interesting times indeed.
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