"The erosion of value of some of the largest U.S. financial institutions came to a head this weekend as Lehman Brothers failed to find a buyer, Merrill Lynch entered into a deal to sell itself to Bank of America, AIG announced plans for a restructuring. This weekend was widely anticipated by market participants to result in the sale of Lehman Brothers and the coming week is scheduled to include quarterly earnings reports from Goldman Sachs and Morgan Stanley, and meeting of the Federal Reserve Open Market Committee. Ahead of all this, S & P 500 financial sector closed last week 23% above the mid-July low with only a few troubled companies trading at or near lows. However, the weekend events were disappointing for investors. Most importantly, Lehman Brothers failed to find a buyer forcing a bankruptcy filing and the Treasury made it clear that it would not guarantee any losses as it had during the Bear Sterns sale".

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