Book contents
- The Fed and Lehman Brothers
- Studies in Macroeconomic History
- The Fed and Lehman Brothers
- Copyright page
- Contents
- Preface
- Acknowledgments
- A Chronology of the Lehman Disaster
- 1 Introduction
- 2 The Crisis of 2008
- 3 The Legal Criteria for Fed Assistance
- 4 Lehman’s Balance Sheet and Solvency
- 5 Lehman’s Liquidity Crisis
- 6 Lehman’s Collateral and the Feasibility of Liquidity Support
- 7 Fed Discussions of Collateral and Liquidity Support
- 8 Fed Actions That Ensured Lehman’s Bankruptcy
- 9 Possible Long-Term Outcomes for Lehman
- 10 How Risky Were the Fed’s Rescues of Other Firms?
- 11 Who Decided that Lehman Should Fail?
- 12 Explaining the Lehman Decision
- 13 Conclusion
- Notes
- References
- Index
- Other books in the series (continued from page ii)
8 - Fed Actions That Ensured Lehman’s Bankruptcy
Published online by Cambridge University Press: 04 June 2018
Book contents
- The Fed and Lehman Brothers
- Studies in Macroeconomic History
- The Fed and Lehman Brothers
- Copyright page
- Contents
- Preface
- Acknowledgments
- A Chronology of the Lehman Disaster
- 1 Introduction
- 2 The Crisis of 2008
- 3 The Legal Criteria for Fed Assistance
- 4 Lehman’s Balance Sheet and Solvency
- 5 Lehman’s Liquidity Crisis
- 6 Lehman’s Collateral and the Feasibility of Liquidity Support
- 7 Fed Discussions of Collateral and Liquidity Support
- 8 Fed Actions That Ensured Lehman’s Bankruptcy
- 9 Possible Long-Term Outcomes for Lehman
- 10 How Risky Were the Fed’s Rescues of Other Firms?
- 11 Who Decided that Lehman Should Fail?
- 12 Explaining the Lehman Decision
- 13 Conclusion
- Notes
- References
- Index
- Other books in the series (continued from page ii)
Summary
The Fed did not passively allow Lehman to fail; rather, officials instructed Lehman executives to file for bankruptcy and took steps to ensure that the firm had no alternative. These actions involved arbitrary restrictions on Lehman’s access to the PDCF, restrictions that thwarted plans by Lehman to remain in operation with PDCF assistance.
- Type
- Chapter
- Information
- The Fed and Lehman BrothersSetting the Record Straight on a Financial Disaster, pp. 145 - 164Publisher: Cambridge University PressPrint publication year: 2018