The turmoil surrounding embattled Wall Street giant Lehman Brothers extended Friday as its share meltdown continued and the company and US government scrambled to find a buyer.
Shares in Lehman fell 9.3 percent to 3.84 dollars on the heels of a 41.7 percent slide Thursday.
With Lehman on the brink of collapse, speculation swirled over a deal to save the the venerable Wall Street firm amid ongoing debate on whether the US government should "backstop" any deal with credit guarantees -- a decision widely criticized in the takeover of Bear Stearns earlier this year.
Some reports said officials and company executives were trying to put together a deal over the weekend.
"The central bank's rumored involvement will again raise concerns about moral hazard," said Ryan Sweet at Economy.com.
"Many view the Bear Stearns takeover and the recent seizure of mortgage giants Fannie Mae and Freddie Mac as bailouts.