NYTimes: Blood on wall street

"The American International Group, the insurance company, is planning a major reorganization and a sale of its aircraft leasing business and other units to stabilize its finances, a person briefed on the company’s strategy said on Sunday."

"In one the most dramatic days in Wall Street history, Merrill Lynch was near a deal to avert a crisis, while Lehman Brothers hurtled toward liquidation. "

"In May, David Einhorn, one of the most vocal short sellers on Wall Street, made no secret he was betting against Lehman Brothers. Now, some investors are afraid that fund managers like him will take advantage of the climate of fear stirred up by the troubles of Lehman to single out other weak financial firms whose declining share prices would bring them rich rewards. "