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The article discusses events surrounding Merrill Lynch & Co.'s sale of itself to Bank of America Corp., and the apparently unsuccessful efforts by U.S. regulators and financial industry executives to arrange a sale of Lehman Brothers Holdings Inc. A key impetus was Treasury Secretary Henry Paulson's decision that the government would not bail out Lehman.

Reports that Parmalat SpA, the struggling Italian dairy industry giant, plans to seek bankruptcy protection in Italian courts. Disclosure of information by the company regarding a company bank account at Bank of America Corp.; How bonds the company claims to have bought back figures into the on-going investigation into the company's financial structure; Value of the company's outstanding debt if it is determined Parmalat did not buy back the bonds; Evidence collected at the office of Grant Thornton, the accounting firm that audited the Parmalat subsidiary that had claimed to have held the Bank of America account; Involvement of Deloitte & Touche LLP and the United State Securities and Exchange Commission in the investigation;.

Reports that a former hedge-fund manager at Canary Capital Partners LLC, Andrew Goodwin, is emerging as a key figure into the investigation by New York (State) Attorney General Eliot Spitzer into whether investment funds improperly traded mutual-fund shares. After hours trading of stocks claimed by Goodwin, who departed Canary in 2001 and runs Goodwin Trading Corp.; Comments from Goodwin's lawyer, indicating his client does not engage in late trading practices; Number of additional hedge funds that have been subpoenaed in connection with the market-timing trades that occurred in Spitzer's allegations; Bank of America Corp.'s role in the Canary allegations; Role of Edward J. Stern, of Canary Capital, in the trades; Indications that the scope of the investigation is growing to include more hedge funds.

Reports on the deal made between Marsh & McLennan Cos. and its creditors to waive clauses that would have allowed them to cut off financing. Avoidance of a cash shortage; Charges made against the company by New York Attorney General Eliot Spitzer alleging that they engaged in bid-rigging; Banks that fund the company, including J.P. Morgan Chase & Co., Citigroup Inc., and Bank of America Corp; Reasons why the company needs the waiver; Meetings between outside directors and Spitzer to discuss the charges.