Markets crumble under weight of Lehmans insolvency

US stocks plummeted yesterday as the market suffered through its worst day since 9/11.

Following Lehman Brothers’ filing for bankruptcy and the sale of Merrill Lynch to Bank of America stocks went into free fall with shares in Goldman Sachs falling 12.1% while those at Morgan Stanley dropped 13.5% to $32.19 from $37.23 at close on Friday.

Shares in HBOS closed at 282.00p on Friday and they now sit at 201.25p having dropped as low as 180.00p yesterday morning. Its website reveals share value has dropped by 30% at time of writing.

Royal Bank of Scotland is also seeing share prices fall. At close on Friday shares in RBS were at 239.75p but already this morning they have dropped as low as 194p.

The Standard & Poor’s 500 fell 4.7% – the largest one day drop in seven years – and the FTSE 100 fell 3.9%