Over at Grasping Reality: Comment: The Idler: Lehman Brothers Once Again
Over at Grasping Reality: Comment: Lehman Brothers Once Again: “Fed transcripts: Bernanke chose to let Lehman fail…
:…Newly released transcripts cast doubt on the claim that the Fed didn’t have the power to save the investment bank http://fortune.com/2014/02/21/fed-transcripts-bernanke-chose-to-let-lehman-fail
But the difference between a firm being insolvent and illiquid isn’t cut-and-dried, and it hinges on how you value a bunch of inscrutable assets…. We can see that the Fed was clearly considering a $200 billion loan to help keep Lehman afloat. These emails called that approach ‘a gamble’ that might be worth taking… READ MOAR