Did The Government Let Lehman Brothers Fail? | Crisis On Wall Street

two years later the commission investigating the financial crisis finds no evidence that insufficient collateral prevented the Fed and chairman ben bernanke from bailing out lehman instead it cites erroneous assumptions that the impact of LeMans failure would be manageable and concerns about political reaction I don't believe that's true and you know Hank and Ben have written about this openly they publicly in the initial days after Lehman's failure did not want to say that we had no option to save him on our own they thought for them to clear at that point that we had no options available to protect people from the panic would make the panic worse this argument that they didn't have the legal authority was never brought up that weaken this argument that they didn't have the legal authority was created after the fact I believe and they said at the time that there was no political will to rescue Lehman and I also think that they either misunderstood or underestimated the consequences of allowing Lehman to go back they had the power that was a decision the decision they made to let Lehman go and I think the reason was that they thought the country could withstand it it was a judgment they made I know they feel that they couldn't have that they didn't have the power to but long ago some Veggie German told me that whatever the Fed things that can do it could do so you think the Fed could have done it if they wanted to I think if I were chairman of the Fed and I saw what was going on in the United States then I think I would have done whether I could do it or not [Music] you you

Channel: CNBC

Views: 22,331

Keywords: Cnbc, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, financial news, stock market news, warren buffett cnbc, warren buffett lehman brothers, cnbc crisis on wall street, lehman brothers doc, lehman brothers, too big to fail, andrew ross sorkin, Jamie dimon, why did lehman fail, lehman brothers collapse, erin callan, next financial crisis, financial crisis 2008

Id: 7mcphUYNYeI

Length: 2min 2sec (122 seconds)

Published: Mon Sep 10 2018