An extra-ordinary weekend has seen US Investment Bank Lehamn Brothers file for bankruptcy.Secondly Merrill Lynch has ben bought bu the Bank of America.
Both companies were badly hit by having bought bad mortgage related debt.
There will be repercussions this week. The Bank of England & European Central Bank have provided more money today to help credit markets and it is predicted that the US Federal reserve will lower interest rates.
How does it affect the consumer in Swindon & beyond?
Lehaman Brothers & MerrillLynch have been at the heart of the credit crunch. The cleansing/purging of the 2 companies is part of the clear up process.
AS the process goes on then credit will slowly begin to be made available to banks....which will eventually mean customers will be able to get cheaper mortages (theoretically).
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