The Wall Street Journal reports that discussions are ongoing today to formulate a rescue package for Lehman Brothers this weekend. ( I imagine the scene from “The Godfather” when the heads of the families came together in a plush, panelled board room to end the ruinous war which was destroying their businesses.) The story notes that the primary stumbling block is the amount of assistance, if any, which the Federal Government will provide. At this juncture, Secretary Paulson is adamant that no taxpayer money will be put at risk. The story and earlier stories indicates that the regulators are in favor of an industry led bail out similiar to the consortium which rescued Long Term Capital a decade ago.
Originally published at Across the Curve and reproduced here with the author’s permission.