Lehman downfall triggered by mix-up between London and Washington

Guardian (London) ^ | 3 September 2009 | Larry Elliott and Jill Treanor

[lowbuck]

A breakdown in communications at the highest level between the US and the UK led to the shock collapse of the investment bank Lehman Brothers in September last year, a Guardian/Observer investigation has revealed.

The downfall of Lehman, which triggered the biggest banking crisis since the Great Depression, came after a rescue bid by the high street bank Barclays failed to materialise.

[lowbuck]

An interesting read from the left leaning Guardian. Enjoy.

[glorgau]

Lack of instant communication may have been the trigger, but it gambling that put them in the position to fail. They were simply taking too many risks and paid for it with their corporate life.

[edcoil]

Lehman was a mainly European operation and Europe wanted America to bail them out and President Bush said if Europe wanted them bailed out Europe could do it.

The administration rightly so did not believe the American people would be happy bailing out a European company.

[norton]

Interesting part about attempts to war-game a crisis situation...wonder if the US actually did let that chance go by?

[CharlesWayneCT]

I believe that allowing Lehman to fail was Paulson’s response to Obama’s falling poll numbers. Paulson was, after all, a Democrat, and knew that a bank failure would help his candidate.