FINANCIAL TIMES: Timothy Geithner says he would have supported a US Federal Reserve loan to help Barclays buy Lehman Brothers on the weekend in September 2008 that ended with the largest bankruptcy in US history.
In his memoir of the financial crisis, Stress Test , to be published on Monday, Mr Geithner – the former New York Fed president and Treasury secretary – reveals divisions among the officials trying to save Lehman…
“In the end, I’m confident the Fed would have helped finance a deal with a willing buyer, and I think Hank [Paulson, then Treasury secretary] would have supported that, no matter what his people had told the press,” writes Mr Geithner.
“But Fed assistance would not have eliminated the risk to Barclays, much less the British requirement for a shareholder vote, and I don’t see how it would have changed the British position.” … (more)
