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Feds, Banks Seek Lehman Deal by Tonight

BofA, Barclays balk at bad assets, but bailout not in the cards

By Harry Kimball, Newser Staff

Posted Sep 13, 2008 2:05 PM CDT

(Newser) – Washington and Wall Street continued talks today aimed at solving the Lehman Brothers crisis as early as tonight, the Wall Street Journal reports. Federal Reserve officials still refuse to approve a bailout like the one that enabled JP Morgan to acquire Bear Stearns this summer—but possible buyers like Bank of America and Barclays are balking at Lehman's bad assets, which have so far hindered a deal.

Expanded lending, established after the Bear debacle, is still available to Lehman, but “the intended purpose of Federal Reserve lending is to provide liquidity to sound institutions,” Ben Bernanke said. "The financing that we did for Bear Stearns is a one-time event that has never happened before, and I hope it never happens again."

Federal Reserve Chairman Ben Bernanke. (AP Photo)

Traders work on the floor of the New York Stock Exchange. (AP Photo)

Lehman Brothers Headquarters in New York City. (AP Photo)

Chart shows stock prices for Lehman Brothers. (AP Photo)

Lehman Brothers Holdings Inc. Chairman and Chief Executive Officer Richard Fuld, Jr. (AP Photo)

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Feds, Banks Seek Lehman Deal by Tonight

BofA, Barclays balk at bad assets, but bailout not in the cards

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Ben Bernanke • Wall Street • Bank of America • Barclays • Federal Reserve • Bear Stearns • Lehman Brothers • bailout • financial crisis

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More Newser Stories

Feds Let Lehman Fail—Then Loaned It $138B Anyway

Paulson & Co. say cash was to 'facilitate orderly wind-down' of trades, but questions persist

Fed Won't Say Where $2T in Loans Went

Money is in addition to $700B Wall St. bailout; collateral unclear, too

Bernanke, Paulson Put Fear of God Into Pols

Of meeting with officials, lawmaker says: 'We have never heard language like this'

10 Banks Form $70B Fund to Stave Off Crash

Paulson brokers twin public-private liquidity measures

Bank of America in Talks to Buy Lehman Bros.

Investment bank looking for buyers to save it from collapse

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Feds, Banks Seek Lehman Deal by Tonight

BofA, Barclays balk at bad assets, but bailout not in the cards

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Wall Street • Bank of America • Barclays • Federal Reserve • Bear Stearns • Lehman Brothers • bailout • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Feds Let Lehman Fail—Then Loaned It $138B Anyway

Paulson & Co. say cash was to 'facilitate orderly wind-down' of trades, but questions persist

Fed Won't Say Where $2T in Loans Went

Money is in addition to $700B Wall St. bailout; collateral unclear, too

Bernanke, Paulson Put Fear of God Into Pols

Of meeting with officials, lawmaker says: 'We have never heard language like this'

10 Banks Form $70B Fund to Stave Off Crash

Paulson brokers twin public-private liquidity measures

Bank of America in Talks to Buy Lehman Bros.

Investment bank looking for buyers to save it from collapse

About Us

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Newser By Users

Community

Site Maps

Tools

More News

What is Newser?