The candidates react to Monday’s news that Lehman Brothers filed for bankruptcy and Bank of America bought out Merrill Lynch.

OBAMA: “The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren’t minding the store.” More here.

Plus: Obama also speaks with some of his economic advisers — including Paul Volcker, Bob Rubin, Lawrence Summers and Laura Tyson — about the state of the financial markets.

MCCAIN: “The McCain-Palin Administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street.” More here.

Politico: “America’s banking instability could upend the final 50 days of the presidential campaign.”