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TWT correspondent discusses AIG rescue packag -

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ELEANOR HALL: And there's been another major move on Wall Street.

The UK based bank, Barclays, announced this morning that it will buy up Lehman Brother's, which
earlier this week collapsed in the biggest bankruptcy in history.

Correspondent Michael Rowland is in New York where he's been monitoring events on the markets and
he joins us now.

Michael first to AIG, how are the markets likely to react to this rescue package?

MICHAEL ROWLAND: I think we're likely to see something of a rally tomorrow based, to consolidate on
that 100 plus point gain the Dow Jones industrial average experienced in today's session.

There are huge sighs of relief, almost audible sighs of relief here in America's financial capital,
that this rescue package has come about because the consequences of AIG going under simply weren't
worth contemplating.

There were fears that it could trigger more corporate collapses and create even more mayhem on an
already strained US financial system.

So expect to see the market go up tomorrow, expect to see renewed interest in the battered
financial services sector, and expect to see the fears of a global financial catastrophe eased
somewhat, at least for the time being. Because nobody's willing to be just how much deeper this
financial hole has to be dug.

ELEANOR HALL: Now what more can you tell us about the announcement by Barclays, that it will buy
Lehmans?

MICHAEL ROWLAND: Barclays has agreed to pay $US2-billion to buy Lehman's core US broker dealer
business, now that includes its equity, its fixed income and various other assets. As part of the
deal we're told that Barclays will also take on up to 9000 Lehman Brothers employees who are left
effectively jobless by the investment bank's filing for bankruptcy earlier this week.

Significantly the deal doesn't include any of Lehman's real estate, or those toxic real estate
backed derivatives that were the trigger for Lehman Brothers' collapse and of course so many other
problems for so many other investment banks both in the United States and around the world.

ELEANOR HALL: Does this mean Lehmans will survive as a brand?

MICHAEL ROWLAND: It certainly is looking better than it was a few hours ago, before this deal was
announced, it is still in chapter 11 bankruptcy, but it certainly makes the process of digging
itself out of that financial black hole much easier.

It's obviously going to lose what is in many respects its key jewel in the crown, namely that
broker dealer business which is now going to Barclays.

But it does extend something of a financial lifeline, an after the bell financial lifeline if you
like, but certainly something that would be looked on as quite an optimistic and a promising sign
by those involved to try to resuscitate Lehmans.

ELEANOR HALL: Michael Rowland thank you.

That's Michael Rowland our correspondent in New York.