Sunday, September 14, 2008
US Government Tells Wall Street to Take the Hit on Losses
The US government has finally called Wall Street's bluff and told the bankers to absorb the losses on Lehman's collapse by themselves: "Both Barclays and Bank of America expressed interest in buying Lehman and were negotiating hard, initially insisting that the government provide financial support. But federal officials were adamant that no public money be used — a big point of contention because many of the top Wall Street executives believe that their banks, which have each written down tens of billions of dollars in assets, do not have the capacity to lead the rescue on their own. The prospects of a deal involving Bank of America appeared to fade as talks progressed Saturday and it became clear that the government would not stray from its position."