Bankruptcy of Lehman Brothers and the embarrasment of AIG: a financial tsunami

The Wall Street has made its biggest losses since 9/11 as the world suffered a global financial crunch. Manic Monday saw the US financial market downsliding to its worst tumble since 9/11 with three major financial tragedies: the bankruptcy of Lehman brothers, the sale of Merrill Lynch and the largest insurer AIG being downgraded by credit rating agencies. The financial tsunami which has drowned markets worldwide owes its origins to the bankruptcy filed by Lehman Brothers and the sale of Merrill Lynch. Global markets have additionally suffered because credit rating agencies gave negative ratings to the biggest insurance company in the US, American International Group (AIG). AIG’s stock has plummeted 61 percent to $4.76 on Monday. It is quite a huge jolt because AIG is a big player in the insurance sector around the world. The Tokyo and London markets have suffered too tumbling more than 4 percent, their lowest in three years.

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