Entries tagged "The Fed"
Lurking in the details of Lehman Brothers Inc.'s big yard sale is a plan to get the Federal Reserve off the hook. If Lehman was in a heap of trouble over the last few weeks, the Fed was arguably just as bad. What would it do if a run began? In the wake of the Fannie Mae/Freddie Mac bailouts, would the Fed backstop another big firm as customers and counterparties followed shareholders out the door? Could it find a buyer for Lehman? Or would it just let Lehman die, thus revealing stark limitations to its strategy since the Bear Stearns...
