Lehman Brothers shares crushed; market sees financial frenzy

By Aaron Hochman-Zimmerman

New York, Sept. 11 - Lehman Brothers Holdings Inc. may be the next Bear Stearns, but unlike recent sessions that were consumed by big Lehman losses, investors seemed to take the prospect of a failure in stride as the Dow put up a 164-point late-day rally.

Bank names were plastered all over the headlines on Thursday as Deutsche Bank AG was on the march for a German rival, and even Washington Mutual Inc. was seen with the usual suspects in the bailout game, including Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co. and U.S. Bancorp.

The bailout talk did not finish in financials, however. The day included talk of a possible Federal car loan for General Motors Corp.

Also, with his lawsuit behind him, "Hank" Greenberg seemed ready to start hammering at American Insurance Group Inc. to possibly break apart his former company.

Elsewhere, the frequent visitor to deal-land, Cleveland-Cliffs Inc., took advantage of general market weakness to tie up some loose ends with Australian miners Portman Ltd. and AusQuest Ltd.

Despite the havoc in the financials, the Dow Jones Industrial Average ended better by 164.79, or 1.46%, to end at 11,433.71, while the Nasdaq Composite Index added 29.52, or 1.32%, to finish at 2,258.22. The S&P 500 improved by 17.01, or 1.38%, to close at 1,249.05.

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