A close look behind the scenes, between late March and mid-October, 2008: we follow Richard Fuld's benighted attempt to save Lehman Brothers; conversations among Hank Paulson (the Secretary of the Treasury), Ben Bernanke (chair of the Federal Reserve), and Tim Geithner (president of the New York Fed) as they seek a private solution for Lehman's; and, back-channel negotiations among Paulson, Warren Buffet, investment bankers, a British regulator, and members of Congress as almost all work to save the U.S. economy. By the end, with the no-strings bailout arranged, modest confidence restored on Wall Street, and a meltdown averted, Paulson wonders if banks will lend.
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There was an approach last month from Russia. They have considerable holdings in Fannie and Freddie as well. They suggested we coordinate and without warning dump hundreds of billions of Fannie and Freddie's bonds onto the market.
That would be...
Chaos. The amount of debt your country carries is a terrible vulnerability.
We declined. Respectfully. Even in the US it seems the relationship between the government and private industry isn't so simple.