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Paulson's brother worked for Lehman Brothers, and it doesn't take a lot of reading between the lines to see that this was a strong factor in why the company did
by trevelyan 12y ago
Paulson's brother worked for Lehman Brothers, and it doesn't take a lot of reading between the lines to see that this was a strong factor in why the company did not receive any support.
In contrast, concerns about nepotism didn't apply to the relationship between the Treasury and other banks, although the Treasury seemed sensitive to Goldman (JP Morgan and Jamie Dimon got better treatment). Personally, I think the Treasury and the Fed did a good job in response to the crisis, and that Congress abdicated almost all responsibility for dealing with the crisis, leaving the financial response dominated by monetary policy (which by definition favors the financial sector by promoting unequal access to terms of credit) instead of a more egalitarian process.