The Frankfurt branch of the Lehman Brothers bank is pictured in Frankfurt September 15, 2008. U.S. Treasury Secretary Henry Paulson said Monday that he has never considered to use taxpayer money to bail out Lehman Brothers, which was choked by the credit crisis and falling real estate values.   (Xinhua/Reuters Photo) Photo Gallery>>>

    WASHINGTON, Sept. 15 (Xinhua) -- U.S. Treasury Secretary Henry Paulson said Monday that he has never considered to use taxpayer money to bail out Lehman Brothers, which was choked by the credit crisis and falling real estate values.

    While briefing reporters at the White House, Paulson said he "never once" considered that it was appropriate to put taxpayer money on the line in resolving Lehman Brothers, the fourth-biggest investment bank in the United States.

    The 158-year-old investment bank filed for Chapter 11 bankruptcy protection from its creditors Monday and said it was trying to sell off key business units.

    To discuss the future of Lehman Brothers, an emergency meeting attended by top Washington policymakers and major financial institutions, was held Friday at the New York Federal Reserve Bank and lasted three days.

    At the meeting Paulson held firm to the position that the federal government would not step in and supply any money to resolve the crisis at Lehman Brothers.

    Paulson stressed at the briefing that he did not "take lightly" any decision to put taxpayer money at risk to prop up a private company.

    As the government refused to provide a financial backstop to potential buyers, Lehman Brothers's last hope of surviving outside of court protection faded Sunday after British bank Barclays PLC withdrew its bid to buy the investment bank.

    In the fallout, Merrill Lynch was forced to agree to be sold to Bank of America, and insurance giant AIG sought to raise cash to head off its own crisis.

    There are possibilities that more financial institutions could follow these titans' suit, analysts believe, describing the situation as "a financial hurricane."

    Still, the American people can remain confident in the "soundness and resilience in the American financial system," Paulson said at the briefing.

    Late Sunday, the treasury secretary vowed to take steps to maintain stability in financial markets.

    "I am committed to working with regulators and policymakers -- including Congress -- to take necessary and appropriate steps to maintain the stability and orderliness of our financial markets," Paulson said in a statement issued Sunday night.

    "And I will engage with regulators and policymakers around the world to that end," he said. 

Wall Street plunges amid U.S. financial crisis

Trader Jeff Feldman works in the S&P 500 pit at the Chicago Mercantile Exchange, September 15, 2008.(Xinhua/Reuters Photo) Photo Gallery>>>

    NEW YORK, Sept. 15 (Xinhua) -- New York stocks made landslide losses on Monday with Dow Jones shedding more than 500 points, as the U.S. financial turmoil battered investors' confidence in the health of economy.

    Lehman Brothers, the fourth biggest U.S. investment bank, filed for bankruptcy Monday after two most serious buyers Barcklays and Bank of America (BOA) withdrew from talks to buy the firm. New York-based Lehman, the biggest U.S. underwriter of mortgage securities, has lost 94 percent of its market value this year after record losses from investments tied to mortgages.

Lehman Brothers nears bankruptcy as buyers quit

    NEW YORK, Sept. 14 (Xinhua) -- The fourth largest U.S. investment bank, Lehman Brothers Holdings Inc., prepared to file for bankruptcy Sunday after Barclays PLC and Bank of America Corp. (BOA) pulled out from talks to buy the firm.

    Barclays, the U.K.'s third biggest bank, and the BOA withdrew as they could not get guarantees from the government or other Wall Street firms to protect against potential losses on Lehman's assets.

Bank of America acquires Merrill for $44 billion

    NEW YORK, Sept. 14 (Xinhua) -- Merrill Lynch & Co., the third largest U.S. investment bank, agreed late Sunday to sell itself to Bank of America Corp. for roughly 44 billion U.S. dollars.

    According to the deal, Bank of America will pay 29 dollars per share for the 94-year-old Merrill Lynch, which is 70 percent premium above Merrill's Friday close at 17.05 dollars per share. However, the offer is only two-thirds of Merrill's value of one year ago, and half its all-time peak value of early 2007. Full story

NY mayor: NY "well-positioned" to handle Wall Street crisis

    NEW YORK, Sept. 15 (Xinhua) -- New York Mayor Michael Bloomberg said Monday the city is "well-positioned" to handle the crisis on Wall Street, but that it won't be an easy job.

    The mayor briefed New Yorkers on the impact of Wall Street conditions on the city's economy after Lehman Brothers, the fourth-largest U.S. investment bank, said early Monday that it would file for bankruptcy, and the Bank of America unveiled plans to buy Merrill Lynch, one of the world's leading financial management and advisory companies. Full story