Financial Giants Fall NEW YORK (Associated Press) -
Storied Wall Street firm Lehman Brothers Holdings says it intends to file for Chapter 11 bankruptcy protection.

The 158-year-old Lehman was crippled by 60 billion dollars in soured real-estate holdings and unable to find an investment partner to throw it a lifeline.

Lehman said in a statement early today that none of its broker-dealer subsidiaries or other units would be included in the Chapter 11 filing in U.S. bankruptcy court in New York.

The investment bank said it is exploring the sale of its broker-dealer operations and is in "advanced discussions" to sell its investment management unit.

Bank of America says it will acquire Merrill Lynch in an all-stock transaction worth about 50 billion dollars.

The deal should lift the uncertainty shrouding Merrill since the start of the credit crisis over a year ago.

Charlotte, North Carolina-based Bank of America has the most deposits of any U.S. bank, while Merrill Lynch is the world's largest and most widely recognized brokerage. A combination of the two will create a global financial services giant involved in everything from fixed-income trading to stock underwriting to credit card lending.

The transaction is expected to close in the first quarter of 2009. It has been approved by directors of both companies and is subject to shareholder votes at both companies and standard regulatory approvals. © Copyright 2009, Associated Press