By Chua Kong Ho and Chan Tien Hin
Sept. 15 (Bloomberg) -- Australian stocks and U.S. futures tumbled after Lehman Brothers Holdings Inc. prepared to file for bankruptcy as potential buyers abandoned talks.
Commonwealth Bank of Australia, the nation's largest lender, fell 3.2 percent and Macquarie Group Ltd., Australia's biggest investment bank, tumbled 7.3 percent on renewed concern more banks will fail, adding to $514 billion of credit-related losses. Barclays Plc and Bank of America Corp. abandoned talks to buy Lehman and Wall Street prepared for its possible liquidation.
Australia's S&P/ASX 200 Index slumped 69.20 points, or 1.4 percent, to 4,834.60 at 10:30 a.m. in Sydney. Stock markets in Japan, Korea, Hong Kong and China are closed for holidays today.
Standard & Poor's 500 Index futures expiring in December retreated 30.90, or 2.5 percent, to 1,227.60 in New York.
``The global credit crisis has permeated through all markets,'' said Jason Teh, who helps manage the equivalent of $5.7 billion at Investors Mutual Ltd. in Sydney. ``The real economy will feel the effects of this because it takes time for the banking system to restore itself.''
The MSCI World Index has lost 19 percent this year as the worst U.S. housing recession since the Great Depression caused the subprime debt market to collapse, widening credit spreads and weighing on global economic growth.
Lehman and its lawyers are getting ready to file for bankruptcy protection, said a person with direct knowledge of the firm's plans. A final decision still wasn't made, though none of the other options being considered appear to have much standing, the person said, declining to be identified because the discussions haven't been made public.
Commonwealth Bank lost 3.2 percent to A$41.61, while Macquarie Group fell 7.3 percent to A$40.80.
To contact the reporter on this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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