The losses and mergers of recent weeks in the circles of the world's biggest banking companies has caused massive unsettlement of finance markets in all major centres.

 

The faltering of Lehmann Brothers and fears for the health of AIG, one of the worlds biggest commercial insurers and a keystome in economic stability, have brought finance experts in Governmemts around the world into sharp focus as they struggle with a hugely dynamic situation that threatens to turn the once powerful economies of the major countries into an embarassing shambles.

 

Pumping money into the finance systems without bringing their budgets to their knees is what is called for on both sides of the Atlantic, but the promises of the US administration that initially created a rebound in the markets are proving to be harder to implement that first expected.

The UK Goverment, in comparison, is taking more of a watching brief and has decided to wait a little longer, perhaps until things get really bad, before taking further action. Their rescue of Northern Rock seems insignificant compared to what may be lurking just around the corner.

 

So far the UK finance houses have been left to help themselves with Lloyds TSB taking on the faltering HBOS and there may be more to hear from Bradford and Bingley in the days to come.

Nomura of Japan has already stepped in to take on parts of Lehmann Brothers which may see some of it's UK employees keep their jobs.

 

At the consumer end of the equation, mortgages seem to be remaining largely stable, although availability still seems to be limited to clean and creditworthy customers.