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John:
That is a story from February of 2009. First reported in the WSJ.
The poster on Yahoo changed the date to today's.
Coach T
Economic Crisis May End as Downgrades, Defaults Forecasts Drop
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MORE EVIDENCE THE LEHMAN PORTFOLIO IS HEALING...Coach T..
By Emre Peker and Bryan Keogh
Sept. 21 (Bloomberg) -- The worst economic crisis in seven decades may be coming to an end as corporate-credit-rating downgrades and default forecasts drop.
The number of non-financial U.S. companies downgraded fell by 71 percent to 31 last month from 106 in December, according to Moody’s Investors Service. The default rate on U.S. high- yield, high-risk bonds will fall to 4 percent next year, JPMorgan Chase & Co. said today, lowering a previous forecast of 7 percent.
Credit-rating downgrades declined to levels last seen before Lehman Brothers Holdings Inc. filed for bankruptcy a year ago. Analysts started to cut high-yield default forecasts as speculation that the economy is out of recession prompted a six- month rally in the riskiest assets. Investors are snapping up junk-rated debt amid signs that the economy is pulling out of a recession and narrowing yields are making it easier for borrowers to refinance maturing debt and fund their businesses.
“Ratings are signaling improving credit conditions and a possible end to the slump,” Moody’s analysts led by Mark Gray in New York said today in a report.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asCwRZMQK.4k
COMPANIES ARE PAYING LEHMAN FROM 53% UP TO 80% to settle derivitives contracts with LEHMAN!
NEW YORK, Sept 21 (Reuters) - New York's cash-strapped Metropolitan Transportation Authority terminated three swaps with bankrupt Lehman Brothers (LEHMQ.PK) at a bigger discount than those negotiated by other public entities, the agency's finance director said on Monday.
While the nation's biggest mass transit only paid 53 cents on the dollar, other public agencies are paying from 60 to even 80 cents to end their Lehman swaps, Pat McCoy said at a webcast finance committee meeting.
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2131183920090921
The Perfect Storm...now playing to the upside!
Coach T
Economic Crisis May End as Downgrades, Defaults Forecasts Drop
Share | Email | Print | A A A
MORE EVIDENCE THE LEHMAN PORTFOLIO IS HEALING...Coach T..
By Emre Peker and Bryan Keogh
Sept. 21 (Bloomberg) -- The worst economic crisis in seven decades may be coming to an end as corporate-credit-rating downgrades and default forecasts drop.
The number of non-financial U.S. companies downgraded fell by 71 percent to 31 last month from 106 in December, according to Moody’s Investors Service. The default rate on U.S. high- yield, high-risk bonds will fall to 4 percent next year, JPMorgan Chase & Co. said today, lowering a previous forecast of 7 percent.
Credit-rating downgrades declined to levels last seen before Lehman Brothers Holdings Inc. filed for bankruptcy a year ago. Analysts started to cut high-yield default forecasts as speculation that the economy is out of recession prompted a six- month rally in the riskiest assets. Investors are snapping up junk-rated debt amid signs that the economy is pulling out of a recession and narrowing yields are making it easier for borrowers to refinance maturing debt and fund their businesses.
“Ratings are signaling improving credit conditions and a possible end to the slump,” Moody’s analysts led by Mark Gray in New York said today in a report.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asCwRZMQK.4k
Have you got a couple John...I am interested in what they might be discussing...
Thanks,
Coach T
Is there a Pincher Buy service that would pick it up at the end of this week...or would it have generated that buy signal over last weekend?
Coach T
Remind me again Rhino, what is a PINCHER PLAY? Doesn't it have something to do with a certain combination of crossovers on the technicals?
Thanks,
Coach T
And after $.50???
The day before it all started...$5.00+.
The weekly and monthly charts are taking this move over soon IMO.
Coach T
Tomorrow is the last day to file claims against LBHI that are not derivatives related.
Right now the marketplace is selling derivatives claims from .50 to .80 on the dollar.
This is where the money is right now and why I think the bonds do not reflect the improvement. Ever since the July 341 meeting this LEHMAN's have had a steady bid IMO.
New balance sheets should be out before too long!
Enjoy the Ride in the meantime!
Coach T
JUST GOT AN EMAIL REPLY FROM HOLLY DICE AT A&M.
I asked her by email when the new balance sheets for 1st and 2nd QTR would be available...
She said "We are in process as we speak, but do not yet have a time frame.
Think maybe some good news might be slipping out? Volume patterns are tremendous here...
Enjoy the Ride!
Coach T
Some of the WAMUQ, WAMKQ, WAMPQ money should be showing up soon....
They are lighting up the board also.
When they move LEHMAN's move.
Enjoy the Ride!
Coach T
At $.25 and $.38 respectively the point and figure charts will reverse to the buy side. Depending on whether you are using a 2 or 3 box system.
FWIW...
Enjoying the Ride Yet?
By the way, the target generated by the PnF reversal is $1.75 and $2.56 respectively.
Coach T
What is the importance of the RSI going over 50 on the weekly?
Also, what is the TRIX and what is it that makes you so bullish. Not that I am complaining...just comparing notes...
Thanks,
Coach T
That is a great chart Brikk!
Thank you for the kind words on my prior post.
It feels like the more powerful weekly charts are getting ready to take control of the upmove. We may see daily overbought readings for an extended period while the weekly charts are in gear.
At what point would you estimate the DMI to crossover the negative on the weekly charts Brikk?
Thanks,
Coach T
DERIVATIVES/SWAPS THEORY...Here goes.
LEHMAN just got its structure set for dispute resolution on derivative positions swaps, etc. So now there is a court ordered system in place that was designed pretty much by Lehman.
The court dockets have revealed something to me recently. Lehman has received a great deal of terminations from counterparties as of the filing date.
However, unless certain information was provided in a traditional manner the court has not been allowing the termination!
What if the new ADR (dispute resolution) makes the counterparties that did not terminate properly (which was many of them according to court docs) renegotiate at today's prevailing prices?
We know the CDO's, etc. have improved in price substantially! Maybe we are seeing the market starting to digest the fact that all of the collateral which was "netted" out at September/October 2008 prices and "netted" improperly has to be recalculated under the new ADR procedures at today's prices!
That would add about 15-20% IMO to the collateral barrel!
Closing the gap beween Assets and Liabilities to the plus side.
Thoughts???
Coach T
DERIVATIVES/SWAPS THEORY...Here goes.
LEHMAN just got its structure set for dispute resolution on derivative positions swaps, etc. So now there is a court ordered system in place that was designed pretty much by Lehman.
The court dockets have revealed something to me recently. Lehman has received a great deal of terminations from counterparties as of the filing date.
However, unless certain information was provided in a traditional manner the court has not been allowing the termination!
What if the new ADR (dispute resolution) makes the counterparties that did not terminate properly (which was many of them according to court docs) renegotiate at today's prevailing prices?
We know the CDO's, etc. have improved in price substantially! Maybe we are seeing the market starting to digest the fact that all of the collateral which was "netted" out at September/October 2008 prices and "netted" improperly has to be recalculated under the new ADR procedures at today's prices!
That would add about 15-20% IMO to the collateral barrel!
Closing the gap beween Assets and Liabilities to the plus side.
Thoughts???
Coach T
How about a little good news after the close! That would give us a nice gap up on Monday,create an "island bottom" and really match up the weekly charts.
Coach T
Dave...I made a post regarding that yesterday on this board. One of the Congressman has an "event" on the floor that eventually makes it to the President and he presents it the UK.
It does not become a bill but has Presidential and Congressional clout nonetheless.
Enjoy the Ride!
Coach T
What was the conversation on CNBC and who was talking?
Coach T
Brikk:
On your weekly J, D and LEHMQ charts...DMI looks like it is trying to cross over positive...any thoughts?
Looks like it may happen in the next couple of weeks if all goes well.
Then we would see a ramp up!
Coach T
THIS IS HUGE!!!
Commercial-Mortgage Bond Risk Plummets on Treasury Tax Rules
Sept. 17 (Bloomberg) -- The price of derivatives tied to lower-rated bonds backed by commercial properties soared after the U.S. Treasury Department adopted rules that ease tax penalties when borrowers seek to modify potentially troubled loans.
The price of Markit CMBX index contracts linked to bonds rated AA, which increases as the cost to protect the securities from default falls, rose as much as 5 points to 45.50 yesterday, according to JPMorgan Chase & Co. data. Bonds rated A were up 6 points to 36.22, the data show.
The new rules allow property owners to begin negotiating with loan servicers to modify terms before missing payments, potentially preventing forced sales from flooding the market. That’s particularly good news for lower-rated bondholders, who get paid after top-ranked investors and would rather keep the debt outstanding and delay losses, said Alan Todd, an analyst at JPMorgan in New York.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aK6KoBasCDZo
This is pointed right at the LEHMAN Portfolio!
The Perfect Storm!
Coach T
THIS IS HUGE!!!
Commercial-Mortgage Bond Risk Plummets on Treasury Tax Rules
Sept. 17 (Bloomberg) -- The price of derivatives tied to lower-rated bonds backed by commercial properties soared after the U.S. Treasury Department adopted rules that ease tax penalties when borrowers seek to modify potentially troubled loans.
The price of Markit CMBX index contracts linked to bonds rated AA, which increases as the cost to protect the securities from default falls, rose as much as 5 points to 45.50 yesterday, according to JPMorgan Chase & Co. data. Bonds rated A were up 6 points to 36.22, the data show.
The new rules allow property owners to begin negotiating with loan servicers to modify terms before missing payments, potentially preventing forced sales from flooding the market. That’s particularly good news for lower-rated bondholders, who get paid after top-ranked investors and would rather keep the debt outstanding and delay losses, said Alan Todd, an analyst at JPMorgan in New York.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aK6KoBasCDZo
This is pointed right at the LEHMAN Portfolio!
The Perfect Storm!
Coach T
I REST MY CASE...JUST FOUND THIS MORSEL. 10 different investors just paid $462M on a 1.2B Morgan Stanley derivatives claim!
THAT'S 38%!
http://www.ft.com/cms/s/0/f7e8f4a6-a3af-11de-9fed-00144feabdc0.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058
Morgan Stanley has sold a $1.2bn claim in the liquidation of the Lehman Brothers estate this week, in a move highlighting the booming market for trading claims and bonds linked to the hundreds of different Lehman entities.
The Morgan Stanley claim was linked to about 10,000 derivatives transactions to which Lehman was a counterparty. It was sold on to about 10 different investors, according to people with knowledge of the trade, at a price of 38.5 per cent of face value, or $462m. Morgan Stanley declined to comment.
The Ride is Taking Off! Enjoy It!
Coach
I REST MY CASE...JUST FOUND THIS MORSEL. 10 different investors just paid $462M on a 1.2B Morgan Stanley derivatives claim!
THAT'S 38%!
http://www.ft.com/cms/s/0/f7e8f4a6-a3af-11de-9fed-00144feabdc0.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058
Morgan Stanley has sold a $1.2bn claim in the liquidation of the Lehman Brothers estate this week, in a move highlighting the booming market for trading claims and bonds linked to the hundreds of different Lehman entities.
The Morgan Stanley claim was linked to about 10,000 derivatives transactions to which Lehman was a counterparty. It was sold on to about 10 different investors, according to people with knowledge of the trade, at a price of 38.5 per cent of face value, or $462m. Morgan Stanley declined to comment.
The Ride is Taking Off! Enjoy It!
Coach T
It would not surprise me at all to wake up in the next couple of weeks and trading has been halted with news pending...
Looking at the daily and weekly charts a gap up would fill out the chart completely and leave an island bottom.
If you were not in...NO ONE would ever be able to get back in unless it is a $2 or higher.
Take a look!
The Perfect Storm!
Coach T
It all feeds to the same pot of gold.
If you buy a claim from someone that owns a bond...the claim and the bond are one. It just does not show up in way that can be tracked thru bond trading. If you pay the claim to someone that owns the underlying bond...you don't have to pay on the bond.
It took me a year to figure it out. Never said I was smart...just persistent!
Coach T
Don't be surprised if a major counterparty to LEHMAN begins to take a larger interest in the assets/liabilities. If they are already at risk in the derivative position with LEHMAN why not pick up the assets/liabilities (with a little government assistance).
I now think that the bond prices have been dormant because the major players are buying the claims directly for $.15-50 on the dollar.
Coach T
The Common chart looks like it is ready to explode. It is almost perfectly symetrical on both the daily and weekly charts.
The perfect Storm...it is all taking shape!
Coach T
Is the Calvary on its way? Congress is getting into the LEHMAN game?
http://dealbook.blogs.nytimes.com/2009/09/17/lawmaker-introduces-bill-to-speed-return-of-lehman-assets/
Lawmaker Seeks to Speed Return of Lehman Assets
A Washington lawmaker is trying to persuade his colleagues in Congress to weigh in on the liquidation of Lehman Brothers, a year after the once-pound Wall Street firm imploded.
Gregory W. Meeks, a Democrat who represents New York’s Sixth Congressional District, has introduced a concurrent resolution calling on the administrators of Lehman’s bankruptcy in the United States and Britain to establish an international framework to ensure the swift return of customer claims. In particular, Mr. Meeks’ measure focuses on $50 billion in hedge fund assets held at Lehman’s prime brokerage unit in London.
Concurrent resolutions are not presented to the president and do not have the force of law, but are meant to express the sentiments of Congress.
PricewaterhouseCoopers is overseeing the liquidation of the London-based unit, called Lehman Brothers International Europe, or LBIE. In July, the accounting firm and several creditors reached an agreement to expedite the repayment of the assets held in the prime brokerage unit, but Britain’s high court rejected the settlement.
In the resolution, Mr. Meeks said the personal liability imposed on PricewaterhouseCoopers by British law has slowed down the process of returning assets to Lehman’s customers. He suggests the proper authorities in Britain consider relieving the accounting firm of personal liability in the LBIE case.
Several hedge funds, including Ramius, Highbridge Capital Management, GLG Partners, Newport Global Opportunities Fund, Amber Capital and Harbinger Capital Partners, have had their accounts frozen since Lehman filed for bankruptcy last year.
Several funds have asked members of Congress over the past several months to intervene on their behalf with British authorities.
“Despite the goodwill efforts by our members, the trustees of LBIE and others to find a solution for over a year, we are still on square one,” said Stuart Kaswell, the general counsel of the Managed Funds Association, which represents the hedge fund industry. “What is overlooked here is that this represents $50 billion of assets that belong to pension funds and institutional endowments who need the liquidity locked up in LBIE more than ever.”
The assets frozen in LBIE include stocks, bonds, derivative contracts and other securities owned by hedge funds, insurance companies and other investors. Mr. Meeks’ resolution also requests that the Securities and Exchange Commission dedicate sufficient resources to protecting investors, including those owning $150 billion worth of bonds, in Lehman’s bankruptcy case in the United States.
“Not only have market losses occurred, but in Lehman U.K, the money is trapped,” said Tracy Maitland, head of Advent Capital Management. “Additionally, many school endowments are laying off teachers, and the return of their assets will go a long way toward helping them fund their historical levels of services.”
Enjoy the Ride!
Coach T
Is the Calvary on its way? Congress is getting into the LEHMAN game?
http://dealbook.blogs.nytimes.com/2009/09/17/lawmaker-introduces-bill-to-speed-return-of-lehman-assets/
Lawmaker Seeks to Speed Return of Lehman Assets
A Washington lawmaker is trying to persuade his colleagues in Congress to weigh in on the liquidation of Lehman Brothers, a year after the once-pound Wall Street firm imploded.
Gregory W. Meeks, a Democrat who represents New York’s Sixth Congressional District, has introduced a concurrent resolution calling on the administrators of Lehman’s bankruptcy in the United States and Britain to establish an international framework to ensure the swift return of customer claims. In particular, Mr. Meeks’ measure focuses on $50 billion in hedge fund assets held at Lehman’s prime brokerage unit in London.
Concurrent resolutions are not presented to the president and do not have the force of law, but are meant to express the sentiments of Congress.
PricewaterhouseCoopers is overseeing the liquidation of the London-based unit, called Lehman Brothers International Europe, or LBIE. In July, the accounting firm and several creditors reached an agreement to expedite the repayment of the assets held in the prime brokerage unit, but Britain’s high court rejected the settlement.
In the resolution, Mr. Meeks said the personal liability imposed on PricewaterhouseCoopers by British law has slowed down the process of returning assets to Lehman’s customers. He suggests the proper authorities in Britain consider relieving the accounting firm of personal liability in the LBIE case.
Several hedge funds, including Ramius, Highbridge Capital Management, GLG Partners, Newport Global Opportunities Fund, Amber Capital and Harbinger Capital Partners, have had their accounts frozen since Lehman filed for bankruptcy last year.
Several funds have asked members of Congress over the past several months to intervene on their behalf with British authorities.
“Despite the goodwill efforts by our members, the trustees of LBIE and others to find a solution for over a year, we are still on square one,” said Stuart Kaswell, the general counsel of the Managed Funds Association, which represents the hedge fund industry. “What is overlooked here is that this represents $50 billion of assets that belong to pension funds and institutional endowments who need the liquidity locked up in LBIE more than ever.”
The assets frozen in LBIE include stocks, bonds, derivative contracts and other securities owned by hedge funds, insurance companies and other investors. Mr. Meeks’ resolution also requests that the Securities and Exchange Commission dedicate sufficient resources to protecting investors, including those owning $150 billion worth of bonds, in Lehman’s bankruptcy case in the United States.
“Not only have market losses occurred, but in Lehman U.K, the money is trapped,” said Tracy Maitland, head of Advent Capital Management. “Additionally, many school endowments are laying off teachers, and the return of their assets will go a long way toward helping them fund their historical levels of services.”
Enjoy the Ride!
Coach T
The Specter of Lehman Shadows Trade Partners...LEHMAN wins again!
Here is some more...
"But on Tuesday, a bankruptcy-court judge said Metavante no longer has the right to terminate the swap and ordered the company to send missed payments of about $7 million to Lehman. A spokesman for Metavante and a lawyer for Chicago's school board declined to comment."
"Some people took advantage of the situation thinking no one was there, and others said they just weren't going to pay us what we were owed; that's money we are chasing right now," said Larry Brandman, head of Lehman's bankruptcy strategic-advisory group, in an interview in August."
http://online.wsj.com/article/SB125313981633417557.html?mod=googlenews_wsj
The Perfect Storm...
Coach T
Here is a taste of what is coming...from The Street.com
The Perfect Storm is on the horizon...
http://www.thestreet.com/story/10599802/1/jpmorgans-lehman-liability-collateral-damage.html?cm_ven=GOOGLEFI
Enjoy,
Coach T
Dnoto...Nice post on tomorrow's hearing.
We have some unfinished business on motions from Tuesday also. Specifically, the LIBRA proceeding will set a precedent, oh, and it is a really big settlement!
The Harrier and Ballyrock adversary proceedings are also precedents as I recall.
One other major proceeding is the BNY proceeding. I can't find an update on that one. Maybe it got bumped to Oct. court date and got by me. Anyone know?
If you can have fundamentals on a BK company...I really like how this is setting up. All of the variables are trying to form the "perfect storm in LEHMAN'S FAVOR IMO. Credit Defaults are easing, Loans portfolios are getting better marks, RE is stabilizing to increasing, and the motions continue to appear going in LEHMAN'S favor.
Don't care much for the J chart right now. Looks like it needs time to bake. Might be news driven for the next few weeks. We shall see.
Keep the Faith!
Coach T
There are alot of cross currents happening as we speak!
I was looking thru the www.lehmancreditors.com website maintained by the Unsecured Creditors commitee.
Clicking on the "Committee Filed Pleadings" link and then clicking on "adversary" I found that the Committee just filed a pleading that said,
"BANK OF AMERICA, N.A. v. Lehman Brothers Special Financing Inc. et al." "Memorandum of the Official Committee of Unsecured Creditors in Support of the Motion for Summary Judgment of Lehman Brothers Holdings, Inc. and Lehman Brothers Special Financing, Inc."
Basically, this means it is all coming to a head just like Mr. Marsal said it would. This is the LBHI action against B of A!
If the Unsecured Committee is supporting by filing this pleading they are in full court OFFENSE!
GO A&M and WEIL!
Coach T
The AUGUST MOR has been posted to the LBHI Docket page.
Looks like another 400M net into the coffers including 527M that went OUT to shore up Aurora Bank.
One positive is that the cash flow numbers are getting reported more timely...which means A&M is getting their hands around the operation. This will mean better disclosure and information soon.
I would expect to see an updated Balance sheet for the first and second quarters soon.
REMEMBER...we still have the court hearing from yesterday that has a lot of motions being decided. Should have more info today. Virtually all motions are decided in LBHI favor.
Keep the Faith!
Coach T
I don't have a reason for the bonds/Preferreds trading this way...yet.
The AUGUST MOR has been posted to the LBHI Docket page.
Looks like another 400M net into the coffers including 527M that went OUT to shore up Aurora Bank.
One positive is that the cash flow numbers are getting reported more timely...which means A&M is getting their hands around the operation. This will mean better disclosure and information soon.
I would expect to see an updated Balance sheet for the first and second quarters soon.
REMEMBER...we still have the court hearing from yesterday that has a lot of motions being decided. Should have more info today. Virtually all motions are decided in LBHI favor.
Keep the Faith!
Coach T
I am truly surprised to see A&M and separately the SIPA Trustee for LBI file the motions against Barclay's BEFORE the Examiner finished his investigation.
There must be Hard, Cold, Facts, in the volumes of depositions they both submitted in the motions filed today. I did not expect these until after January.
Motions and evidence against JPM, Citi, and B of A must not be far behind.
40B to cover the A/L deficit and the Preferred face value doesn't look so far away now. It would be nice to see the bonds participate.
Coach T
That LBI SIPA Trustee confirming the same conclusion that LBHI has come to. Which I believe is KEY...
The LBI Trustee has been sitting on about 16B+ of assets it has been disputing since June with Barclay's. 10B+ of that is in the DTCC (Depositary Trust Clearing Corporation) that Barclay's has been trying to get its hands on. This is according to the Trustee's update located on the LBI SIPA Dockets which is separate from LBHI's docket page (EPIQ is maintaining this website as well).
What's another 10B between adversaries. Smells like $18B to me!
Enjoy...the WIND IS FINALLY AT OUR BACKS!
Coach T
That LBI SIPA Trustee confirming the same conclusion that LBHI has come to. Which I believe is KEY...
The LBI Trustee has been sitting on about 16B+ of assets it has been disputing since June with Barclay's. 10B+ of that is in the DTCC (Depositary Trust Clearing Corporation) that Barclay's has been trying to get its hands on. This is according to the Trustee's update located on the LBI SIPA Dockets which is separate from LBHI's docket page (EPIQ is maintaining this website as well).
What's another 10B between adversaries. Smells like $18B to me!
Enjoy...the WIND IS FINALLY AT OUR BACKS!
Coach T
Lehman Post Mortem, Did Bernanke and Paulson Blackmail Congress?
Politics / Credit Crisis Bailouts
Sep 15, 2009 - 11:08 AM
By: Mike_Whitney
"Lehman's fate was sealed not in the boardroom of that gaudy Manhattan headquarters. It was sealed downtown, in the gloomy gray building of the New York Federal Reserve, the Wall Street branch of the U.S. central bank." Stephen Foley, U.K. Independent
Stephen Foley is on to something. Lehman Bros. didn't die of natural causes; it was drawn-and-quartered by high-ranking officials at the US Treasury and the Federal Reserve. Most of the rubbish presently appearing in the media, ignores this glaring fact. Lehman was a planned demolition (most likely) concocted by ex-Goldman Sachs CEO Henry Paulson, who wanted to create a financial 9-11 to scare Congress into complying with his demands for $700 billion in emergency funding (TARP) for underwater US banking behemoths. The whole incident wreaks of conflict of interest, corruption, and blackmail.
The media has played a critical role in peddling the official "Who could have known what would happen" version of events. It's all part of cynical cover-up. Bernanke and Paulson were fully-aware that they playing with fire, but they chose to proceed anyway, using the mushrooming crisis to achieve their own narrow objectives. When things began to spin out of control--credit markets froze, interbank lending slowed to a crawl, and stock markets plunged--the Fed and Treasury persisted anyway, demanding their $700 billion pound of flesh before they'd do what was needed to stop the bleeding. It was all avoidable.
Lehman had potential buyers, including Barclays, who probably would have made the purchase if Bernanke and Paulson had merely provided guarantees for some of their trading positions. Instead, Treasury and the Fed balked, thrusting the knife deeper into Lehman's ribs. They claimed they didn't have legal authority for such guarantees. Its a lie. The Fed has provided $12.8 trillion in loans and other commitments to keep the financial system operating without congressional approval or any explicit authorization under the terms of its charter. The Fed never considered the limits of its "legal authority" when it bailed-out AIG or organized the acquisition of Bear Stearns by JP Morgan pushing $30 billion in future liabilities onto the public's balance sheet. The Fed's excuses don't square with the facts.
The rest of the story...
http://www.marketoracle.co.uk/Article13487.html
Coach T