The government is creating an agency to absorb all the shaky bets Wall Street has made recently. While it is too early to fully grasp the ramifications of this move, we feel safe in assuming that Dick Fuld and many Lehman employees are extremely upset.
NYT: The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history.
While details remain to be worked out, the plan is likely to authorise the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.
Senior aides and lawmakers said the goal was to complete the legislation by the end of next week, when Congress is scheduled to adjourn. The legislation would grant new authority to the administration and require what several officials said would be a substantial appropriation of federal dollars, though no figures were disclosed in the meeting.
Business Insider Emails & Alerts
Site highlights each day to your inbox.