US investment firm bankrupt

The fourth-largest investment bank in the US, Lehman Brothers has filed for bankruptcy protection, amid a growing global financial crisis.



The firm has reportedly incurred billions of dollars in losses in the US mortgage market.



The move threatens to deal a further blow to the global financial system, as banks unwind their deals with Lehman.



The bank’s Brothers collapse came after the strongest potential buyers pulled out over the weekend.



Barclays and Bank of America had been in talks to rescue the investment bank but negotiations faltered when it became clear that the US Treasury was strongly opposed to using government money to help settle a deal.



Another firm, Merrill Lynch, also affected by the credit crunch, has agreed to be taken over by Bank of America in a dramatic weekend of events for Wall Street.