NEW YORK - Stocks are tumbling in early trading and Treasury bond prices are soaring as investors react to a stunning reshaping of the landscape of Wall Street.
Markets are skidding across much of the globe as investors absorb the bankruptcy filing at Lehman Brothers Holdings Inc. and Merrill Lynch & Co's's forced sale to Bank of America Corp. for $50 billion in stock. And perhaps most ominously, American International Group Inc. is asking the Federal Reserve for emergency funding. The world's largest insurance company plans to announce a major restructuring Monday.
The swift developments are the biggest yet in the 14-month-old credit crises that stems from now toxic subprime mortgage debt.
The Dow Jones industrials are down 97 at 11,324, but the losses are expected to steepen as the session wears on.