Portal
Home
Calendar
Gallery
FAQ
Search
Register
Log inLehman fate in balance as talks extend to third day
Page 1 of 1•
Lehman fate in balance as talks extend to third day
by Outspoken on Sat Sep 13, 2008 7:40 pm
Lehman fate in balance as talks extend to third day
By Dan Wilchins and Glenn Somerville
Reuters News Service
NEW YORK/WASHINGTON (Reuters) - Regulators and bankers failed on Saturday to reach a deal to end the crisis at investment bank Lehman Brothers (LEH.N), and emergency talks were extended to a third day as authorities seek to calm jittery financial markets.
So far this year, the government has sponsored rescues of Lehman rival Bear Stearns and mortgage lenders Freddie Mac (FRE.N) and Fannie Mae (FNM.N).
But this time, U.S. Treasury Secretary Henry Paulson is adamant that taxpayer funds not be used, a source familiar with his thinking said on Friday.
The talks on Saturday ended without an announcement, but the final outcome could include hiving off Lehman's bad assets into a "bad bank," in which rival banks would acquire stakes, or even allowing it to file for bankruptcy, people briefed on the matter told Reuters earlier.
The crisis presents a delicate balancing act for Paulson and the Federal Reserve, who have urged Wall Street chiefs to come up with their own solution.
The authorities don't want to be accused of encouraging excessive risk-taking by bailing out another yet another investment bank.
But they also cannot afford to let a blow-up of Lehman paralyze the financial system and deepen the credit crisis.
Investors said that if nothing is done by Monday, global financial markets could plunge, because of fear that the U.S. government will have to prop up more financial institutions.
http://news.yahoo.com/s/nm/20080914/bs_nm/lehman_dc
By Dan Wilchins and Glenn Somerville
Reuters News Service
NEW YORK/WASHINGTON (Reuters) - Regulators and bankers failed on Saturday to reach a deal to end the crisis at investment bank Lehman Brothers (LEH.N), and emergency talks were extended to a third day as authorities seek to calm jittery financial markets.
So far this year, the government has sponsored rescues of Lehman rival Bear Stearns and mortgage lenders Freddie Mac (FRE.N) and Fannie Mae (FNM.N).
But this time, U.S. Treasury Secretary Henry Paulson is adamant that taxpayer funds not be used, a source familiar with his thinking said on Friday.
The talks on Saturday ended without an announcement, but the final outcome could include hiving off Lehman's bad assets into a "bad bank," in which rival banks would acquire stakes, or even allowing it to file for bankruptcy, people briefed on the matter told Reuters earlier.
The crisis presents a delicate balancing act for Paulson and the Federal Reserve, who have urged Wall Street chiefs to come up with their own solution.
The authorities don't want to be accused of encouraging excessive risk-taking by bailing out another yet another investment bank.
But they also cannot afford to let a blow-up of Lehman paralyze the financial system and deepen the credit crisis.
Investors said that if nothing is done by Monday, global financial markets could plunge, because of fear that the U.S. government will have to prop up more financial institutions.
http://news.yahoo.com/s/nm/20080914/bs_nm/lehman_dc
"Music is a moral law. It gives soul to the universe, wings to the mind, flight to the imagination, and charm and gaiety to life and to everything."
Plato (427-347 BC)
Plato (427-347 BC)
