CHICAGO - The news of Lehman Brothers's bankruptcy and Merrill Lynch & Co.'s sale to Bank of America Corp. stunned the municipal market and its participants yesterday, sparking immediate worries over the status of pending deals and unease over how the absence of two venerable Wall Street brokerages stands to reshape the muni landscape.

The 158-year-old Lehman Brothers announced it would file for bankruptcy protection after failing to find a buyer amid the federal government's refusal to provide assistance, and 94-year-old Merrill Lynch agreed to be acquired by Bank of America - a recent suitor of Lehman - in a $50 Billion stock deal.

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