Why did the government pay cash to Lehman Brothers?

as in financial crisis lehman brothers dont have money to pay to its lender and u told that goverment as a stakeholder interfare and paid the cash to lehman brother and took the asset then i think then problem transfer from lehman brother to us govt as it took money from other lender

1 Answer(s)


Atif, that is correct. The government took over the banks risk at that point. But in the case of Lehman government did not bail it our - thats why Lehman went bankrupt. But the government bailed out a lot of banks like Morgan, Merrill etc.

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