{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='WRAP Latest on collapse of Lehmann Brothers bank' data-url='/boclips/videos/5c54c142d8eafeecae150d19' data-video-url='/boclips/videos/5c54c142d8eafeecae150d19' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nWRAP Latest on collapse of Lehmann Brothers bank\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eSeptember 15, 20081. Wide shot exterior Lehman Brother's building 2. Mid shot Lehman Brothers sign3. SOUNDBITE: (English) Carmine Visone, Managing Director at Lehman's Brothers: \"It really has been a family affair for my 37 years there...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eSeptember 15, 2008\u003cbr/\u003e1. Wide shot exterior Lehman Brother's building \u003cbr/\u003e2. Mid shot Lehman Brothers sign\u003cbr/\u003e3. SOUNDBITE: (English) Carmine Visone, Managing Director at Lehman's Brothers: \u003cbr/\u003e\"It really has been a family affair for my 37 years there and I've got nothing but friends in there, and like I said, it's business, it's only business.\" \u003cbr/\u003e4. Tilt down from Lehman's electronic sign to people on street\u003cbr/\u003e5. SOUNDBITE: (English) Eli, no last name given, worked for Lehman Brothers for two years: \u003cbr/\u003e\"I think people are going to just try to help each other out and do what they can to go on and make the best of a bad situation.\"\u003cbr/\u003e6. Mid shot people walking in front of Lehman Brother's entrance\u003cbr/\u003e7. Tilt up exterior Bank of America branch\u003cbr/\u003e8. Mid shot Bank of America Chairman and Chief Executive Officer Ken Lewis shaking hands with Merrill Lynch's chief executive, John Thain\u003cbr/\u003e9. Cutaway of camera operator\u003cbr/\u003e10. SOUNDBITE: (English) Ken Lewis, Bank of America Chairman and Chief Executive Officer: \u003cbr/\u003e\"The combined company is a much stronger entity and will survive most anything as a result of the combination, so we have an opportunity now, obviously we've got a time where we eliminate the redundancies and have the issues of layoffs, but longer term we have the prospects to grow and prosper because we are a strong company in an industry that is having issues.\"\u003cbr/\u003eFILE: Date unknown\u003cbr/\u003e11. Wide tilt down exterior Merrill Lynch building\u003cbr/\u003eSeptember 15, 2008\u003cbr/\u003e12. SOUNDBITE: (English) John Thain, Merrill Lynch Chief Executive Officer: \u003cbr/\u003e\"Any expectation for the difficulties in the marketplace following the Lehman bankruptcy really led us to start to think about what types of transactions might make sense for us and although this will sound very short, actually the first conversations began Saturday morning and the fact that we could put this transaction together basically in 48 hours, I think is a great statement on the strengths on both of our teams, but also the great strategic fit, which from the instant we talked was very, very clear that this transaction made a lot of sense.\"\u003cbr/\u003e13. Wide shot press conference\u003cbr/\u003e14. SOUNDBITE: (English) Jack Gage, Associate Editor at Forbes Magazine:\u003cbr/\u003e\"This is really a tribute to John Thain's ability to come in there with a mandate to clean up shop, make some difficult decisions right off the bat, soon after his arrival, in taking huge writedowns at the time were cause for concern. In retrospect, it would appear that he got rid of a lot of the rubbish before the rest of the firm started to see the fall out. Lehman Brothers had not taken serious write downs and as a result still had the poisonous debt on their books.\" \u003cbr/\u003eSeptember 15, 2008\u003cbr/\u003e15. Wide tilt down exterior of the AIG (American International Group) building\u003cbr/\u003e16. Close up AIG sign\u003cbr/\u003e17. SOUNDBITE (English) David Paterson, New York Governor:  \u003cbr/\u003e\"I have directed our superintendent of insurance to provide the authorisation such that AIG can access 20 billion (b) dollars of its assets through it's subsidiaries for the purpose of posting these assets as collateral to provide liquid cash in order to run the day-to-day operations of the parent company.\" \u003cbr/\u003e18. Mid of AIG entrance\u003cbr/\u003eA stunning makeover of the Wall Street landscape sent stocks falling precipitously on Monday, with the Dow Jones industrials sliding 500 points in their worst point drop since the World Trade Centre attacks in September 2001. \u003cbr/\u003eInvestors reacted badly to a shake-up of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch \u0026amp; Co.\u003cbr/\u003eLehman Brothers, burdened by 60 billion (b) US dollars in soured real-estate holdings, filed a Chapter 11 bankruptcy petition in US Bankruptcy Court after attempts to rescue the 158-year-old firm failed. \u003cbr/\u003eBank of America said it was snapping up Merrill Lynch \u0026amp; Co. in a 50 billion (b) US dollar all-stock transaction.\u003cbr/\u003eThe demise of the independent Wall Street institutions came as shock waves from the 14-month-old credit crisis roiled the US financial system six months after the collapse of Bear Stearns.\u003cbr/\u003eStocks also posted big losses in markets across much of the globe as investors absorbed Lehman's bankruptcy filing and what was essentially a forced sale of Merrill Lynch to Bank of America.\u003cbr/\u003eWhile those companies' situations had reached some resolution, the market remained anxious about American International Group Incorporated, which is seeking emergency funding to shore up its balance sheet. \u003cbr/\u003eA faltering of the world's largest insurance company likely would have financial implications far beyond that of Lehman, the largest US bankruptcy.\u003cbr/\u003eSome employees who gathered outside Lehman Brothers headquarters in midtown Manhattan said they weren't angry about what had happened or about losing their jobs.\u003cbr/\u003eCarmine Visone, who is Managing Director at Lehman's Brothers and spent 37 years working there, said he was optimistic about the future for Lehman's employees. \u003cbr/\u003e\"It really has been a family affair for my 37 years there and I've got nothing but friends in there, and like I said, it's business, it's only business,\" said Visone. \u003cbr/\u003eAlthough he was only with Lehman's for two years, one man said there was a great camaraderie amongst his colleagues. \u003cbr/\u003e\"I think people are going to just try to help each other out and do what they can to go on and make the best of a bad situation,\" he said. \u003cbr/\u003eAlso on Monday, Bank of America Chairman and Chief Executive Officer Ken Lewis held a joint press conference with Merrill's chief executive, John Thain, announcing the buy-out. \u003cbr/\u003e\"The combined company is a much stronger entity and will survive most anything as a result of the combination,\" Lewis told reporters.\u003cbr/\u003e\"Obviously we've got a time where we eliminate the redundancies and have the issues of layoffs, but longer term we have the prospects to grow and prosper because we are a strong company in an industry that is having issues.\"\u003cbr/\u003eMerrill CEO (Chief Executive Officer) Thain said news of Lehman's troubles prompted his company to make a quick decision about their own future. \u003cbr/\u003e\"Any expectation for the difficulties in the marketplace following the Lehman bankruptcy really led us to start to think about what types of transactions might make sense for us,\" said Thain. \u003cbr/\u003eMerrill has had uncertainty shrouding it since the start of the credit crisis over a year ago and their stock had languished further last week. \u003cbr/\u003eThe Bank of America-Merrill deal differs from JPMorgan Chase \u0026amp; Co.'s buy-out in March of Bear Stearns Cos. in that Bear Stearns was sold at a steep discount and with financial backing from the Federal Reserve.\u003cbr/\u003eWhile Merrill Lynch is burdened with soured real estate investments, its financial position is stronger than that of Bear Stearns.\u003cbr/\u003eJack Gage, an Associate Editor at Forbes Magazine, said Merrill Lynch made the right financial moves to save it from a fate similar to Lehman's and Bear Sterns. \u003cbr/\u003e\"This is really a tribute to John Thain's ability to come in there with a mandate to clean up shop... in taking huge write downs at the time were cause for concern. In retrospect, it would appear that he got rid of a lot of the rubbish before the rest of the firm started to see the fall out,\" said Gage. \u003cbr/\u003e\"Lehman Brothers had not taken serious write downs and as a result still had the poisonous debt on their books.\" \u003cbr/\u003eAs a result of the recent economic troubles, a global consortium of banks, working with government officials in New York, have announced a 70 billion (b) US dollar pool of funds to lend to troubled financial companies.\u003cbr/\u003eThe aim of the bank consortium, according to participants who spoke to The Associated Press, was to prevent a worldwide panic on stock and other financial exchanges.\u003cbr/\u003eTen banks - Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS - each agreed to provide seven billion US dollars \"to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets\".\u003cbr/\u003eThe Federal Reserve also chipped in with more largesse in its emergency lending programme for investment banks. \u003cbr/\u003eThe central bank announced late on Sunday that it was broadening the types of collateral that financial institutions can use to obtain loans from the Fed.\u003cbr/\u003eAlso on Monday, New York Governor David Paterson said American International Group Incorporation (AIG) will be allowed to use 20 billion (b) US dollars of assets held by its subsidiaries to provide cash needed for the troubled insurer to stay in business.\u003cbr/\u003eThe move comes as AIG reviewed its operations and discussed alternatives with outside parties, reportedly including Warren Buffett's Berkshire Hathaway Incorporated, to shore up its business amid concerns the world's largest insurer could need billions (b) of dollars to shore up its balance sheet.\u003cbr/\u003ePaterson asked New York state insurance regulators to essentially allow New York-based AIG to provide a bridge loan to itself. \u003cbr/\u003eThe governor has also asked the head of New York's insurance department to talk with federal regulators about providing an additional bridge loan to AIG.\u003cbr/\u003eAIG could also face significant claims in the not too distant future from Hurricanes Ike and Gustav, which have battered the Gulf Coast and will only add to the financial troubles of the insurer.\u003cbr/\u003e\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='action-container flex justify-between'\u003e\n\u003cbutton aria-expanded='false' aria-label='Read more description' class='rp-full-description' type='button'\u003e\n\u003ci class='fai fa-solid fa-align-left'\u003e\u003c/i\u003e\n\u003cspan id='read_more'\u003eRead More\u003c/span\u003e\n\u003c/button\u003e\n\u003cdiv class='rp-report'\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv aria-labelledby='resource-details-heading' class='rp-info-section'\u003e\n\u003ch2 class='title' 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