Lehman Heading To Ch. 7 Bankruptcy By Midnight?

The fed was plenty busy over the weekend spending much of today and yesterday working with Bank of America and Barclay's to iron out a deal for troubled Lehman Brothers, the nation's 4th largest investment bank. The problem is that when both potential bidders learned of the Fed's inclination not to back or bail out the troubled securities both banks have reportedly walked from a potential deal. This leaves only one viable option, liquidation. The day is not quite done yet, and anything can happen, but it's not looking good. The Wall Street Journal seems to have the best beat on this issue. Here is WSJ's full article:
Barclays Walks from Lehman Deal; Likelihood for Transaction Narrows (WSJ)

And Bank Of America To Absorb Merrill Lynch?
Story: Bank Of America Eyes Merrill (WSJ)

Update 8:47p.m.: NY Times Reports That Lehman Plans Bankruptcy Filing

Update 9:47p.m.: Bank Of America Reaches Deal To Buy Merrill For $44 Billion (WSJ)