Wall Street Worst Moment in history

--One 09/15/2008, Leh filed for bankruptcy after the Barclays and BAC left the table for takeover deals. --The 158-year-old firm had survived railroad bankruptcies of 1800s, the Great Depression in the 1930s, and the collapse of LTCM in 1990s, succumbed to the credit crunch, which started in 2007 and originated from subprime houing market. --The collapse of Lehman, which listed more than $613 billion of debt, dwarfed Worldcom's involvency in 2002 and Drexel Burnham Lambert's failure in 1990s. --Lehman bondholders may get about 60 cents on teh dollar if it is forced into liquidation --The whole company will go through chapter 11. But the broker-dealer unit will be luiqiddated orderly by Security Investors Protection Corp (SIPC). The borkerage unit might be a big mess if Lehman used customer accounts to raise cash, and alse and repurchase agreements had to be unwound. --Fed draw a line the sand and refused to backtop the risky asset this time. Fed wants the market to believe that it does not encourage moral hazard. Also it believe it could no longer hold taxpayers money at risk for many firms.