Really big Monday Morning Roundup

It's been a busy weekend; this is the shit that hit the fan the hardest/wetest:
The final rout is on for investment banks on what is now being referred to as "Bloody Sunday"...

Lehman Brothers Holdings Inc. (LEH:US): The once fourth- largest U.S. investment bank said it intends to file for bankruptcy after Barclays Plc and Bank of America Corp. (BAC:US) abandoned talks to buy the crippled firm. The embattled investment bank says it will seek Chapter 11 protection and reorganization after frantic weekend of negotiations fails as all potential acquirers back away, feds refuse to commit public funds.

Merrill Lynch & Co. (MER:US): The Famous Bull is no more. Bank of America cemented its status as the largest U.S. consumer bank by agreeing to acquire Merrill Lynch, the world's biggest brokerage firm, for about $50 billion.

Washington Mutual (WAMU:US): The nations largest saving and loan has been so far unable to strike a deal with anyone despite rumors that JP Morgan was a bidder (JP Morgan already swallowed up former powerhouse Bear Stearns in a hasty government aided bailout). WAMU was not on the Fed's "to big to fail" list - so apparantly they are going to fail in one way or another very soon.

American International Group Inc. (AIG:US): The insurer struggling to avoid credit downgrades is seeking a $40 billion bridge loan from the Federal Reserve as it tries to sell assets.

So who might fail next?? According to the short interest, here is the current order of trouble if this nightmare continues beyond Washington Mutual: Wachovia, Wells Fargo, Goldman Sachs, Citigroup, Bank of America, JP Morgan.


All things considered the DJIA futures suggest a 300 point drop at the opening bell which sounds very optimistic.

Now - how about that California budget crisis thing:

California leaders say they have a budget deal
By Steve Wiegand

Senate Republican leader Dave Cogdill, left, and Senate President Don Perata, speaking on the Senate floor last week, both said today that agreement on a new state budget has been reached, pending the OK of both party's caucuses. Perata said he is "100 percent" certain the deal is done.

Legislative leaders said today they at last have a compromise deal on an 11-week-late state budget that calls for no tax increases, no borrowing from local governments or other state special funds -- and which makes no one happy.

Emerging from a weekend meeting in the office of Senate GOP leader Dave Cogdill, the quartet declined to give specific details of their compromise plan, saying they wanted to talk to their respective caucuses first. MORE from the Sac Bee

Blah Blah Blah.... Ok - we all need something less serious... How about Tina Fey as Sarah Palin: