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Geithner talked about this in his book and basically said that they wanted to do something for Lehman but couldn't and only after that collapse was everyone awa
by jonknee 11y ago
Geithner talked about this in his book and basically said that they wanted to do something for Lehman but couldn't and only after that collapse was everyone aware of how serious the situation was and the rules changed. The Fed was operating in no man's land and didn't have the authority to do what it needed to do. This is pretty clear in hindsight with the huge AIG lawsuit. They stretched the rules for AIG because they were staring into the abyss.
- AnimalMuppet 11y ago> ... and the rules changed. That is, the unwritten rules about what was politically possible. The regulations didn't change in that time. But after Lehman, there was the political cover to save AIG. Before Lehman, there wasn't the political cover to save Lehman.
- vithlani 11y agoSure, yes, keep telling yourself that. People like you are the ones that find 50 head outcomes on 50 coin tosses is perfectly normal.
- HiLo 11y ago>That is, the unwritten rules about what was politically possible. I've spoken with some of the people named in this thread and I think this is probably the most concise explanation for some of the questions being raised on Lehman v AIG.