On Sunday, no rest for Wall Street. And the dominos fall.
Brokers are pouring into their offices as a special trading session is called for credit default swaps. The frenzied activity is due to the widespread belief that Lehman Brothers will declare bankruptcy, after Barclays and Bank of America each dropped deal talks.
Charlie Gasparino and Steve Liesman report that other Wall Street firms have also balked at the idea of buttressing Lehman because of the enormous cost of buying the bad debt, the lack of support from the Federal Reserve — and the disturbing notion that they might be called upon again to rescue other desperate firms.