New York, Sep 16: The earth-shattering low on the global markets came after the fourth largest US investment bank Lehman Brothers filed for bankruptcy and Bank of America picked up Merrill Lynch. The dramatic downward spiral events in New York continued to reshape the global financial system as major markets in America, Asia and Europe dropped sharply on Tuesday, Sep 16.
Wall Street on Monday, Sep 15 local time dropped precipitously with the Dow Jones falling more than 504 points, or 4.4 percent, to 10,917, which is its steepest point drop since the market reopened following the Sep 11, 2001 attacks. In Europe, the FTSE index was down 2.72 percent in London, the Paris CAC-40 was off 3.52 percent and Germany's DAX 30 index of blue chips sagged 2.99 percent. Japan's benchmark Nikkei 225 stock index plunged 4.8 percent to 11,632.99, falling under the 12,000-point level for the first time since mid-March.
While in India, BSE benchmark Sensex crashed 472.81 points while Nifty fell 2.51 pc or 102 points 3970.80 on Tuesday, Sep 16. Sensex on Monday, Sep 15 shed 820 points and dropped below 13,000 level.
Lehman Brothers declared bankruptcy after Barclays Plc and Bank of America Corp abandoned takeover talks on Monday, Sep 15 and the company lost 94 per cent of its market value this year.