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The Race to Save Lehman Brothers ("Too Big to Fail")
CNBC / NYTimes ^ | October 20, 2009 | Andrew Ross Sorkin

Posted on 10/21/2009 12:31:38 AM PDT by CutePuppy

In the summer of 2008, two months before Lehman Brothers filed for bankruptcy, Richard S. Fuld Jr., the firm's chairman, was continuing his desperate efforts to find a lifeline. They had begun in March, shortly after the demise of Bear Stearns, when Mr. Fuld called the legendary investor Warren E. Buffett seeking a capital infusion, to no avail. Lehman had raised money elsewhere, but that didn't help for long, and its condition again was worsening.

Adapted from "Too Big to Fail: How Wall Street and Washington Fought to Save the Financial System — And Themselves." The book, being published Tuesday by Viking, reveals how officials in Washington, worried about the impact of Lehman's possible failure on the financial system, for months helped orchestrate efforts by Mr. Fuld to seek a solution for the firm and stave off its collapse. The conversations recounted are based on hundreds of hours of interviews with dozens of participants, many of whom agreed to speak on the condition that they not be identified as sources.

“I know it’s not true, you know it’s not true.”

Richard Fuld, as tightly wound as ever, was raging in his office on the morning of Thursday, July 10, 2008, to one of his lieutenants. Lehman Brothers’ stock had opened down 12 percent, to an eight-year low, in response to a rumor that the Pacific Investment Management Company, the world’s biggest bond fund, had stopped trading with the firm. Speculation also was swirling that SAC Capital Advisors, Steven A. Cohen’s hedge fund, was also no longer trading with Lehman. “You’ve got to call these guys and get them to put out a statement,” Mr. Fuld said.

.....

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Culture/Society; Government; US: New York
KEYWORDS: bearraid; bearstearns; book; bookreview; financialcrisis; geithner; hankpaulson; lehman; paulson; runonthebank; timgeithner; toobigtofail
One of only few books that should be a must read for those who are interested in the anatomy of the financial crisis and how the wheels were turning during near-collapse of global financial systems.
1 posted on 10/21/2009 12:31:39 AM PDT by CutePuppy
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To: CutePuppy

The story of a company that was too big to fail - until it did.


2 posted on 10/21/2009 12:39:26 AM PDT by eclecticEel (The Most High rules in the kingdom of men ... and sets over it the basest of men.)
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To: eclecticEel

The sad part, and a larger lesson of this financial crisis, is that this is a story of more than just one company.

Lehman found itself not at all alone in this position, but almost any institution in TBTF category could turn up on the chopping block, and some, in addition to and bigger than Lehman, actually did.


3 posted on 10/21/2009 1:14:47 AM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy
More juicy details from the book - Paulson Bangs Heads, Fuld Rages in Sorkin Tick-Tock of Meltdown - BL, 2009 October 23, by James Pressley:


4 posted on 10/23/2009 8:44:22 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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