Work

The Fed and Lehman Brothers: Introduction and Summary

Year: 2016

Type: report

Abstract: Why did the Federal Reserve let Lehman Brothers fail?Fed officials say they lacked the legal authority to rescue the firm, because it did not have adequate collateral to borrow the cash it needed.This paper summarizes a monograph that disputes officials' claims (Ball, 2016).These claims are incorrect in two senses: a perceived lack of legal authority was not why the Fed did not rescue Lehman; and the Fed did in fact have the authority for a rescue.

Source: National Bureau of Economic Research

DOI: 10.3386/w22410

Author: Laurence Ball

Institutions: International Monetary Fund, National Bureau of Economic Research, Johns Hopkins University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2500668545

Cites: 3

Cited by: 11

Related to: 10