The week began with thousands of employees losing jobs as a result of the collapse of the famous Lehman Brother investment bank after they declared themselves bankrupt. The bank had been operating for over 150 years before they fell victim to the current financial situation sweeping parts of the globe.

Very soon after, Bank of America bought one of Wall Street's most well know banks, Merril Lynch, in what has been reported to have been a 'rescue mission'. Meanwhile one of the biggest insurance companies AIG had to be aided $85billion by the US Federal Reserve.
But American banks weren't the only ones to feel the heat, as the Bank of England put £5billion into the markets, while the European Central Bank injected €30billion.

The Bank of Scotland and Halifax owner HBOS was not so lucky as they watched their shares plummet to the point where they were forced to accept a takeover offer made by one of the UK's leading banks Lloyds TSB.

Had things not have been so desperate, it is unlikely the competition authorities would have allowed the merger of the two banks, HBOS was already the UKs largest mortgage lender, and Lloyds TSB leading current accounts. However, due to the implications that would have come with the collapse of HBOS, the deal was completed within a matter of hours creating a giant bank worth £30billion
Lloyds chairman Sir Victor Blank commented:"This will be a unique opportunity to accelerate and extend our strategy and create the UK's leading financial services group,"

HBOS chairman Dennis Stevenson added: "This is the right transaction for HBOS and its shareholders."
One of the reasons that contributed to the near collapse of HBOS was thought to be share traders who are known for buying and selling shares in an attempt to make money

However, the Financial Services Authority has now prevented any other financial services firms from falling into the situation as HBOS by bringing in a temporary ban on the short selling of 29 stocks.

These steps may or may not prove enough to prevent any further catastrophes, but one thing we do know is that the globes financial services industry has changed forever.