The collapse of the Lehman Brothers investment bank has sparked a shakeup in Wall Street prompting fears of the worst crisis since the Great Depression. £9 billion was wiped off pensions accounting to the fifth biggest loss in a single day.
The FTSE plunged 4% at a cost of thousands of jobs in America and Britain as mortgages are expected to rise. Pre-empting the crash this September, Lehman's total debts at the end of May were £342 billion. The true aftermath is not yet known for the British and world market but the Halifax Bank reported a 22% drop in the FTSE 100 just two days after.
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