Lehman to file for bankruptcy; BankAm buys Merrill

US investment bank Lehman Brothers announced today that it intended to file for bankruptcy "in order to protect its assets and maximise value."

The financial firm said in a statement that the filing was authorised by its board of directors and will occur at the United States Bankruptcy Court for the Southern District of New York today.

"Customers of Lehman Brothers, including customers of its wholly-owned subsidiary, Neuberger Berman Holdings LLC, may continue to trade or take other actions with respect to their accounts," the statement said.

Bank of America to buy Merrill Lynch for $50 bn

Bank of America has agreed to buy investment bank Merrill Lynch for USD 50 billion in a transaction that creates the world's largest financial services company, the bank announced early today.