Lehman Bankrupt, Bank of America Buying Merrill

Both Barclays and Bank of America opted out of purchasing Lehman.  No surprise.  I wouldn't have bought Lehman without a $60 billion guarantee from the Fed either.  My sources are telling me that a bankruptcy filing by Lehman is imminent.

Meanwhile, Bank of America has moved on to considering a purchase of Merrill Lynch.  Interestingly, a sale of Merrill wasn't even in the cards until this week when it became apparent that investors were losing confidence in any leveraged institution's ability to survive through the credit crunch.  No word on Washington Mutual or AIG's fate.  I guess we'll resolve those issues next weekend.