Lehman bankruptcy part of a restructuring

Published: 15 Sep 2008 19:06:25 PST

WASHINGTON, Sept 15 - The bankruptcy of Lehman Brothers Holdings Inc and sale of Merrill Lynch & Co Inc is part of a restructuring and consolidation of the U.S. financial sector, the IMF's No. 2 official said on Monday.

IMF First Deputy Managing Director John Lipsky said, however, the speed and scale of the developments added to short-term uncertainties and further significant financial strains cannot be ruled out.

Lipsky said the IMF still stood by its forecast of a gradual recovery in global economic growth in 2009 despite the financial turmoil.