How Wall Street was told Lehman was going to fail

Interesting fly on the wall story in the Wall Street Journal about the collapse of Lehman Brothers.

Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and his top New York lieutenant, Timothy Geithner, summoned some 30 Wall Street executives for a 6 p.m. Friday meeting at the Fed’s offices in Lower Manhattan.

“There is no political will for a federal bailout,” Mr. Geithner told the assembled executives, according to a person familiar with the matter. “Come back in the morning and be prepared to do something.”

That was pretty much it. The NY crowd had to sort it out on their own. The article has some more details and is interesting on how the Fed and Wall Street interact.


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