When the Twins Financing Goliath declared bankruptcy late on 14 Sept 2008, The wave of impact on worldwide has caused an under appreciate of dollar and relatively caused the price of oil cool down due to weak demand and low consumption from the Giant Nation.
Lehman Brothers Group and Merill Lynch fall to bankruptcy due to past failure in overcome itself from the wave of subprime mortgage loan crisis from the past few months, which cause Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis.
While another prominent securities firm, Lehman Brothers, hurtled toward liquidation after it failed to find a buyer.
And for the second time this month, the U.S. government put taxpayer money on the hook to rescue a private financial company, saying the failure of the huge insurer American International Group Inc. would further disrupt markets and threaten the already fragile economy.
Federal Reserve provide up to $85 billion in an emergency, two-year loan to rescue AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.
The move was similar to government's seizure on Sept. 7 of mortgage giants Fannie Mae and Freddie Mac, where the Treasury Department said it was prepared to put up as much as $100 billion over time in each of the companies if needed to keep them from going broke.
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