Washington - US stocks were poised for a massive sell-off Monday after embattled investment bank Lehman Brothers Holdings filed for bankruptcy - one of many financial firms in turmoil amid a significant broadening of the US credit crisis.

News of the venerable Lehman Brothers' failure came hours after financial services firm Merrill Lynch & Co agreed to be sold to Bank of America Corp late Sunday night.

The blue-chip Dow Jones Industrial Average fell more than 300 points - more than 2.5 per cent - and the broader Standard & Poor's 500 Index was down more than 3 per cent Monday morning.

Frankfurt - Shares on European markets nosedived on Monday in financial turmoil triggered by the collapse of one of the biggest US investment banks and the sale of another.

Lehman brothers filed for bankruptcy protection after frantic negotiations throughout the weekend failed to produce a buyer. Hours earlier, Merrill Lynch agreed to be bought out by Bank of America Corp for 50 billion dollars in stock.

Germany's blue-chip DAX fell 4 per cent, while the Paris bourse lost 4.9 per cent and the London Stock Exchange was down more than 4 per cent by mid-afternoon.

Paris - Caught up in the turmoil caused by the collapse of US investment bank Lehmann Brothers, the Paris Bourse lost nearly 5 per cent of its value by mid-afternoon on Monday, led downward by weak banking shares.

The big losers for the day were the banks Credit Agricole and Societe Generale, which were down 13.79 and 12.51 per cent, respectively.

For the year, Credit Agricole - France's largest retail banking group and the second largest in Europe - has lost more than 43 per cent of its value.

The shares of two other banks, Dexia and BNP Paribas, fell by 12.10 and 11.54 per cent, while insurance giant Axa lost 11.53 per cent of ts value.

Washington - US stocks were poised for a massive sell-off Monday after embattled investment bank Lehman Brothers Holdings filed for bankruptcy - one of many financial firms in turmoil amid a significant broadening of the US credit crisis.

News of the venerable Lehman Brothers' failure came hours after financial services firm Merrill Lynch & Co agreed to be sold to Bank of America Corp late Sunday night.

Paris - Caught up in the turmoil caused by the collapse of US investment bank Lehmann Brothers, the Paris Bourse lost nearly 5 per cent of its value by mid-afternoon on Monday, led downward by weak banking shares.

The big losers for the day were the banks Credit Agricole and Societe Generale, which were down 13.79 and 12.51 per cent, respectively.

For the year, Credit Agricole - France's largest retail banking group and the second largest in Europe - has lost more than 43 per cent of its value.

The shares of two other banks, Dexia and BNP Paribas, fell by 12.10 and 11.54 per cent, while insurance giant Axa lost 11.53 per cent of its value.

Jakarta - Indonesian stock market plunged by 4.7 per cent Monday, sparked by falls of regional and international markets due to concerns about the US financial sector.