Richard Fuld, the chief executive officer of Lehman Brothers Holdings Inc., spoke to congressional investigators today in the Capitol. He "said the investment bank was felled by rumors, out-of-date rules and slow reactions by regulators that fueled a 'storm of fear' on Wall Street," according to Bloomberg.
A court hearing is scheduled today to determine whether Wells Fargo can buy Wachovia, CNBC reported. Citigroup last week announced it was planning to buy Wachovia's banking unit, and on Friday, Wells Fargo said it would buy the North Carolina-based bank outright.
America’s financial crisis continues to spread to Europe as the euro on Monday “had its biggest one-day drop against the yen in nine years,” according to Bloomberg. Governments in Europe are also promising to help struggling banks.
Eli Lilly & Co. plans to spend $6.5 billion to buy ImClone Systems, Inc., Bloomberg reports. ImClone’s investors would get $70 per share. Previously, Bristol Meyers Squib made a “hostile bid” of $62 per share.
Iceland suspended any trading for its bank shares Monday, “as the country’s regulator sought to head off further instability in the beleaguered financial services sector,” according to the Financial Times.
Countrywide Financial Corp., a mortgage company that was sued by several state attorneys general, has agreed to spend $8.6 billion help 400,000 homebuyers, reported UPI, quoting the site Legal Newsline. Countrywide was accused of using “predatory lending practices.”
Congressional hearings into the nation’s financial problems are scheduled this week, and Richard Fuld, Lehman Brothers chief executive officer, is expected to testify, Reuters reports. Lehman’s demise “helped tip the credit crunch into a full-blown crisis,” the news service said.
A survey from the U.S. Census Bureau indicates that the median home value in the country increased in 2007 to more than $191,000, a 16 percent rise between 2005 and 2007. But, the data does not include numbers stemming from the more recent subprime lending and credit crises.
"An unemployed financial adviser apparently despondent over his situation shot and killed his wife, his mother-in-law and three children before taking his own life in a gated community in Porter Ranch in the northwest San Fernando Valley, Los Angeles police said today," according to the Los Angeles Times.
An attorney for O.J. Simpson has said he will seek a new trial and bail for his client, who was convicted Friday night of robbery, kidnapping and other charges. Simpson was accused of breaking into a Las Vegas hotel room last year to take back some of the former football star's memorabilia.
The U.S. Supreme Court’s term starts today, with a case line-up that includes “tobacco company lawsuits, protecting whales from Navy sonar and a government crackdown on dirty words on television,” Reuters reported.
In a major move to root out al-Qaida and the Taliban from the tribal region, Pakistan mandated about 50,000 Afghan refugees to leave the Bajur tribal region. The government alleges that "many of them have links to militant groups," the Associated Press reports.
Today, Russia said that Georgian forces were attempting to incite a new conflict by using "terrorist acts." However, Russia claimed that it would continue to withdraw completely from the country as planned.
More than 70 are dead and a village has been destroyed after a magnitude 6.3 earthquake hit Kyrgyzstan Monday, according to Reuters. Approximately 100 people were injured. The affected area is in a remote, mountainous part of the country, which has made rescue efforts more difficult.
A court in Hong Kong has refused to overturn the conviction of Nancy Kissel, an American who was sentenced to life in prison in 2005 after she was convicted of killing her husband, Robert Kissel, in 2003.
Several incidents of vandalism over the weekend in Toronto may have targeted liberal party supporters, UPI reports. Police were called in to investigated 26 reports of cut brake, telephone, or cable lines, and some of the victims had signs for liberal candidates in their homes.
Joe Biden has cancelled campaign appearances today and tomorrow following the death of his mother-in-law, Bonny Jean Jacobs, 78, who died on Sunday, The New York Times reports. Jacobs had had an undisclosed illness.
A new report says families with children younger than 5 should not keep reptiles or other exotic pets. These pets carry bacteria and other diseases that could hurt young children or those who have compromised immune systems, Reuters reports.
Tony Stewart won a controversial race Sunday at Alabama’s Talladega Superspeedway. Regan Smith crossed the finish line first, but NASCAR officials said he illegally passed Stewart on the final lap, The New York Times reported.