2 votes

Lehman Bank Failure

One of the big complaints against our current Corporatist system is that when banks fail, the average citizen is put "on the hook" for those failures by having to bail out the banks. Can anyone explain to me then why Lehman Brothers was allowed to fail? They were a big bank. Were they somehow not in the "inner circle"?

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There were 2 going under...

at the same time. Hank Paulson's brother-in-law worked for the other one...so they allowed Lehman to go belly-up. Just a little nepotism.

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BC
Silence isn't always golden....sometimes it's yellow.

"The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them." - Patrick Henry

...

These wallstreet banks are not all on the same team. There are factions vying for power. Henry Paulson is a Goldman Sachs guy who went to work in DC on behalf of his faction, so he didn't really care much about Lehman and decided not to bail them out.

Some times you gotta throw the dog a bone.

Nuff said.