The US Federal Reserve announced that it will lend AIG up to $85bn in emergency funds in return for a government stake of 79.9 per cent and effective control of the company.
Bank of America on Sunday announced the takeover of Merrill Lynch for $50bn, just hours after abandoning talks with Lehman. Lehman Brothers said it would file for bankruptcy protection.
RAB Capital threatened to close their flagship Special Situations fund if investors were not willing to lock up their investment in the fund for another three years.