NEW YORK — A mixture of shock, anxiety and grim resignation settled over tens of thousands of investment bankers, brokers and other Wall Street employees Monday as they absorbed the news that two of the nation's major investment banks were vanishing in the turmoil roiling the financial system.
Just hours before the start of the workweek, Lehman Bros. Holdings Inc. said it was filing for bankruptcy protection and Merrill Lynch & Co. announced it had hastily agreed to sell itself to Bank of America Corp. The developments were dizzying to many, even in an industry accustomed to roller coaster shifts. Although reports of Lehman's potential collapse had begun to surface last week, Merrill Lynch's unexpected sale left its staff stunned.
"It's chaos here," said a broker at Merrill, who did not want his name used because the company had instructed employees not to speak to the media. "People are just flabbergasted."
Outside Lehman's Midtown headquarters on Seventh Avenue, stone-faced employees exiting the glass tower during their lunch hour were confronted by a phalanx of television cameras occupying both sides of the street. Most hurried past without speaking, some snarling when approached.
"Oh, it's unbelievably wonderful. A great day," a man in a gray suit and blue silk tie barked at a reporter as he crossed the street, a BlackBerry pressed to his ear.
Others were more philosophical.
"I guess if I'm going to be in this business, I better get used to this business, the highs and the lows," said a 20-something Lehman employee who works in technology and gave his name as Rafe. "Today is really a low, I guess, for sure."
"I've never been a soldier," added Rafe, wearing a blue oxford shirt, gray slacks and no tie. "Now I feel a little bit like one -- a soldier in the financial world."
Employees said they had not received any word about layoffs, but most Lehman staffers expected to soon be looking for new jobs, competing with armies of other financial-sector workers laid off this year.
At a news conference Monday morning, Kenneth D. Lewis, Bank of America's chief executive, said no decisions had been made about job cuts in the wake of the Merrill Lynch deal. But he indicated that staff from the ranks of both companies could face layoffs.
Merrill has about 60,000 employees. Lehman has about 26,000.
Near the entrance to Lehman Bros., two young brokers from rival Morgan Stanley sat on a granite ledge, taking in the scene sympathetically.
