WaMu shares hit hard

Already battered, Washington Mutual shares fall as potential capital sources’ attention is diverted.

NEW YORK (CNNMoney.com) — Don’t forget about Washington Mutual.

Concerned that Wall Street has done just that, the nation’s largest savings-and-loan plummeted 22% in mid-day trading. Investors are concerned that potential sources of capital have disappeared in the upheaval this weekend on Wall Street that saw Lehman Brothers (LEH, Fortune 500) file the nation’s largest bankruptcy and Bank of America (BAC, Fortune 500) scoop up Merrill Lynch (MER, Fortune 500).

Washington Mutual (WM, Fortune 500) shares were battered last week, losing 36% of their value as investors grew increasingly nervous that the bank didn’t have enough capital to see it through the tsunami sweeping Wall Street.

Read moreWaMu shares hit hard

AIG shares fall 52 percent

NEW YORK (Reuters) – Shares of American International Group fell more than 50 percent in early trading on reports that the insurer had turned to the Federal Reserve for $40 billion in bridge financing to ward off a liquidity crisis and ratings downgrades.

AIG shares dropped 52 percent to $5.82 on the New York Stock Exchange before recouping a bit to $7.41. The shares have fallen 80 percent this year and closed Friday at $12.14.

Read moreAIG shares fall 52 percent

Lehman Files Biggest Bankruptcy Case in History

Sept. 15 (Bloomberg) — Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history.

The 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan today. The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.’s insolvency in 2002 and Drexel Burnham Lambert’s failure in 1990.

Read moreLehman Files Biggest Bankruptcy Case in History

Bank of America Said to Reach $44 Billion Deal to Buy Merrill

Sept. 14 (Bloomberg) — Bank of America Corp. reached a deal to acquire Merrill Lynch & Co. for about $44 billion, the Wall Street Journal reported, after shares of the third-biggest U.S. securities firm fell by more than 35 percent last week and smaller rival Lehman Brothers Holdings Inc. neared bankruptcy.

Read moreBank of America Said to Reach $44 Billion Deal to Buy Merrill

China Detains 19 as Toxic Formula Sickens Hundreds of Infants

SHANGHAI – China said Saturday that 19 people had been detained by the police as part of an investigation into how baby formula had become contaminated with an industrial chemical. The formula is implicated in the death of one infant, and at least 432 others have been afflicted with kidney problems.

Read moreChina Detains 19 as Toxic Formula Sickens Hundreds of Infants

Aspartame Study: 67% of Female Rats Developed Visible Tumors

(PDF): Aspartame Study: 67% of Female Rats Developed Visible Tumors

During My Study, 2/3 of My Female Rats on Aspartame Developed Tumors

The following movies, show photos of the tumors on the females and males in the aspartame group.

Females on aspartame with tumors

The movie shows 20 females on aspartame with tumors, organized by color. Most appeared to be tumors of the lymph or mammary gland. That’s 20 out of 30 or 67% of the females on aspartame. Some also appeared to have tinges of yellowing fur, a possible symptom of aspartame poisoning.


Males on aspartame with tumors

The movie to the right shows seven males on aspartame with tumors. That’s 7/30 = 23% of all males on aspartame. Again, most appeared to be mammary or lymph gland tumors.

Some also appeared to have tinges of yellowing fur, a possible symptom of aspartame poisoning.

The percentage of females-to males from the aspartame group with tumors was 286%.

Female control group tumors

The movie shows five control group females with apparent mammary or lymph gland tumors. The tumors were significantly smaller than those of the females from the aspartame group. None of the males in the control group developed tumors.

Some also appeared to have tinges of yellowing fur, but the discoloration was less than those consuming aspartame.

Other Adverse Effects:

Read moreAspartame Study: 67% of Female Rats Developed Visible Tumors

Deposit insurance system may face WaMu test

Attention has focused on the danger presented by the failure of Lehman Brothers. But the failure of a commercial bank such as Washington Mutual can have systemic consequences if it threatens a run on other weak banks.

Washington Mutual – the sixth largest bank in the US – has lost more than a third of its market value recently as investors fear it lacks liquidity and capital to survive the credit crisis.

The failure of a bank its size would test the strength of the US deposit insurance system and its ability to maintain the confidence of the nation’s savers.

Read moreDeposit insurance system may face WaMu test

Jobless set to top two million as the UK economy heads for meltdown


A JobCentre office

The true scale of the jobs disaster facing Britain is revealed today as experts issue dire warnings that up to half a million workers will lose their jobs over the next two years, as companies cut costs and scale back investment plans to survive the economic downturn.

Official figures are widely expected to reveal this week that the number of people out of work and claiming benefits increased for a seventh successive month in August.

Finance companies based in London’s Square Mile have already laid off thousands of workers since the US mortgage crisis unleashed chaos in the world’s markets last summer; and the 5,000 UK-based staff at crisis-hit investment bank Lehman Brothers are awaiting news this weekend about how many of them will be made redundant.

Read moreJobless set to top two million as the UK economy heads for meltdown

Lehman Brothers teeters on verge of collapse as Barclays pulls out

Lehman Brothers HQ in New York
Lehman Brothers HQ in New York

Global investment bank Lehman Brothers is teetering on the verge of collapse after Barclays pulled out of an 11th-hour rescue.

The departure of Barclays left US Treasury Secretary Hank Paulson and Tim Geithner, the head of the Federal Reserve Bank of New York, spearheading desperate last-ditch attempts to put in place some form of a workable rescue package.

Traders fear that the collapse of Lehman would send shockwaves around the world and spark a global sell-off of shares.

Lehman which employs 4,000 staff in London and 24,00 around the world, could be placed into liquidation as soon as Monday. The bank would be the single largest casualty of the current credit crisis and its collapse one of the biggest failures in Wall Street history.

In one of the most traumatic days in the history of Wall Street, Bank of America is reported to be on the verge of buying Merrill Lynch for $38bn.

Read moreLehman Brothers teeters on verge of collapse as Barclays pulls out

Chicago seeks aid after worst rain in at least 137 years


Chicago received more than 6 inches of rain Saturday, breaking a 1987 record.

CHICAGO, Illinois (CNN)Chicago authorities asked Illinois Gov. Rod Blagojevich to issue a disaster declaration after rainfall Saturday in the Windy City broke a single-day record that had stood for more than two decades.

The deluge flooded streets and stranded residents in their homes. Officials worked to rescue people Sunday as the city grappled with another day of drenching.

O’Hare International Airport recorded 6.64 inches of rain Saturday — breaking the all-time record of 6.49 inches set in 1987, according to the National Weather Service. Records have been kept since 1871.

Read moreChicago seeks aid after worst rain in at least 137 years