Lehman Bros.' management announced that the firm will file for Chapter 11 bankruptcy protection. The move comes just after the investment bank put in place a restructuring plan that includes selling $25 billion to $30 billion of commercial real estate assets. You can view Lehman's bankruptcy statement here.

On the acquisition front, Bank of America is buying the famous investment bank Merrill Lynch for $50 billion. According to this Wall Street Journal article, like Lehman, Merrill has tens of billions of dollars in assets that were devalued due to the credit crunch.

Now it looks like insurance company American International Group will be next to make similar headlines. The firm has plans to restructure, says this Forbes story, after losing billions of dollars from the mortgage crisis, and had major exposure to Fannie Mae and Freddie Mac.