The government may be refusing to throw taxpayer money down the Lehman rat hole, but that doesn’t mean they’re not trying to help. Even SEC chairman Christopher Cox, on vacation during the Bear Stearns collapse, is in constant contact with Dick Fuld.
Washington Post: The Federal Reserve and Treasury Department are actively helping Lehman Brothers put itself up for sale, and officials are hoping a deal will be in place this weekend before the Asian markets open on Monday, according to sources familiar with the matter…
Regulators have been in touch with Lehman on an almost hourly basis in recent days. High-ranking officials including New York Federal Reserve President Timothy F. Geithner, Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke have been discussing a broad range of possibilities for Lehman, trying to determine the risks each outcome could pose to the financial system, the sources said.
The firm has access to a special lending window the Fed created in March, at the time of Bear Stearns’ rescue, though it apparently has not tapped this source even as investors’ confidence in its viability has been shaken in recent days. The Fed reported yesterday afternoon that there were no loans outstanding at that window as of Wednesday. However, simply having that source of cash available may be enough to keep lenders willing to extend loans to the firm.
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