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)
7 - Fed Discussions of Collateral and Liquidity Support
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
Before the Lehman bankruptcy, Fed officials extensively discussed the possibility of liquidity support to avert Lehman’s bankruptcy, and there was almost no discussion of collateral adequacy or legal authority. These factors were raised by officials only after the bankruptcy. In addition, their ex post arguments about these points are based on flawed analyses of legal and economic concepts and factual claims that are not supported by evidence.
- Type
- Chapter
- Information
- The Fed and Lehman BrothersSetting the Record Straight on a Financial Disaster, pp. 113 - 144Publisher: Cambridge University PressPrint publication year: 2018