Lehman and Federal Reserve Assets
Big arrow: Lehman’s bankruptcy filing.
Small arrow: Bear Stearns “crisis”
data source: Financial System Review, december 2008, bank of canada, page 14
Related:
Three days that shook the world
-
Recent Entries - Papers => FRBNY
- Links
- Scariest Chart EVER: Loss Severity, Subprime First-Lien
- Google CDS => AAA
- Empty Creditor Claim
- Links
- Quotes of the Day
- Fed’s MBS Program
- Variability in Nucleus Accumbens Activity Mediates Age-Related Suboptimal Financial Risk Taking
- Links
- Links
- Worth Reading
- Links
- Scorecard: Gross National Savings (% of GDP)
- Withdrawal and Expulsion from the EU and EMU: Some Reflections
- Review of the Differentiated Nature and Scope of Financial Regulation
- Link of the Day
- Summary of a Workshop on Recent Advances in Modelling Systemic Risk Using Network Analysis
- Link
- Links
- The Mechanics of a Graceful Exit: Interest on Reserves and Segmentation in the Federal Funds Market
- [Update] Why Are Banks Holding So Many Excess Reserves?
- Basel Committee: Consultative Proposals to Strengthen the Resilience of the Banking Sector
- The World’s Riskiest Sovereign Debt (Update)
- The World’s Safest Sovereign Debt (Update)
- Liquidity Hoarding and Interbank Market Spreads: The Role of Counterparty Risk
- Sovereign and Bank Credit Risk Premia during 2008-09
- Macro Stress Tests and Crises: What Can We Learn?
- Dollar Appreciation in 2008: Safe Haven, Carry Trades, Dollar Shortage and Overhedging
- Interbank Offered Rate: Effects of the Financial Crisis on the Information Content of the Fixing
- Capital One TARP Warrants Net $146.5 Million
- Links
- The Fed’s Expanded Balance Sheet
- Links
- AIG Regulatory Capital CDS Transactions
- Links
- Links
- Bundesbank: Financial Stability Review 2009
- A Note on Trader Sharpe Ratios
- Links
More: List of All Posts
-
Blogs A Dash of Insight
ETF Update: Searching for Oil
Are there any bright spots in this market?In normal times investors can use sector investing to find opportunities despite overall market weakness. The last two years have provided fewer such ... [Link]
Money Supply
Bank of England: A decision tree
Three issues should dominate tomorrow’s Bank of England inflation report: changes to the Bank’s economic forecasts; the implications of these changes for monetary policy; and the degree to which the ... [Link]
Le blog d'éconoclaste
Cinq petits cochons
Ce n'est plus seulement le titre d'un roman d'Agatha Christie, c'est désormais la plus dangereuse crise de l'union européenne depuis le passage à l'euro (et depuis en fait 1992). Les ... [Link]
The Aleph Blog
The Rope Limit, Redux
Sorry I haven’t written much recently. The recent snowstorms have tossed me around, as I care for my family, and those around me. It is amusing in a backwards way, ... [Link]
contact
jck [at]
aleablog [dot] com
December 14th, 2008 at 1:30 pm
So Lehman was too big to be allowed to fail, but they allowed it to fail anyway?
December 14th, 2008 at 1:42 pm
well, they allowed it to fail because they thought markets would remain orderly, talking about misreading the consequences…
as mentioned in the post “Official: the Fed is clueless” :
The Fed board members assured Griffin (citadel) that the markets would remain orderly as Lehman unwound its positions.
December 15th, 2008 at 8:13 am
Apparently Sunday trading sessions are not enough:
“That’s why Mr. Miller says it was crucial for the government to head off the wholesale termination by counterparties of all their transactions with Lehman before the firm was forced into bankruptcy. “If the Fed or the Treasury said, ‘Let’s say to Lehman, there’s no bailout, we’re not going to save the company,’ they could have supported an orderly unwinding of all the transactions over a period of months,” he says. “It probably would’ve cost the economy a lot less money.”
-Lehman’s undertaker
http://www.nytimes.com/2008/12/14/business/14miller.html?_r=1&ref=business&pagewanted=all
Oh, and Dick Fuld is rumored to be looking to get into advisory, once his contract with Lehman is up at the end of the year.