Global equities tumbled as efforts by policymakers to restore confidence failed. The Dow Jones Industrial Average fell below 10,000 for the first time since October 2004 and the FTSE 100 fell 7.9%. European and many Asian markets were sharply lower
Wall St plummets to four-year lows
The energy, material and financial sectors led Wall Street stocks to their lowest level in more than four years as concerns heightened that the banking crisis would deepen and further hurt the global economy
Fuld says Lehman was victim of 'tsunami'
Dick Fuld, chief executive of the failed investment bank, said he did everything he could to save his company from collapse, but was overwhelmed by a 'financial tsunami'
Fed takes steps to bolster liquidity
The Federal Reserve said it would increase the size of its key TAF lending facility to commercial banks, pay interest on excess reserves to smooth liquidity operations, and allow money market funds to borrow via banks to fund their holdings of commercial paper
Citigroup and Wells Fargo open talks
Citigroup and Wells Fargo have opened talks to resolve their bitter dispute over the takeover of a Wachovia in a move that could lead to a break-up of the sixth-largest lender in the US.
EU resists plan for bail-out fund
EU policymakers stressed the need for a common approach to the financial crisis, but stopped short of suggesting they would resurrect a short-lived proposal to set up an EU-wide bail-out fund for troubled banks
BNP takes control of Fortis in €14.5bn deal
French bank will take control of the main Belgian banking and insurance operations of Fortis in a deal brokered by the Belgian government following the surprise nationalisation of the group's Dutch businesses
Germany guarantees savings
Germany said it would guarantee all private German bank accounts – currently worth €568bn – in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe's largest economy
ImClone backs $6.5bn Eli Lilly bid
The US cancer drug maker agrees a $70 a share cash offer from Eli Lilly, which trumped an unsolicited approach from ImClone's partner Bristol-Myers Squibb
Iceland acts to guarantee deposits
Iceland guaranteed all deposits in the country's banks as it sought to reassure local savers about the health of the country's beleaguered financial system
Lehman failed to convince Fed on survival plan
The US bank lobbied the Fed this summer to be given access to liquidity, but was unable to convince regulators, just two months before the Fed endorsed similar proposals from Goldman Sachs and Morgan Stanley
Credit market to price $500bn in bad deals
The credit derivatives markets will set the price tag for settling up to $500bn of contracts related to Fannie Mae and Freddie Mac, the US mortgage lenders whose seizure by the US government had the unexpected knock-on effect of triggering defaults on derivatives deals
BNP to take control of Fortis
French bank will take control of the remaining assets after the Belgian government was forced to find a buyer following the shock Dutch nationalisation of its part of the troubled banking and insurance group