Source: No Gov't Funds For Lehman Bros.

Treasury Secretary Said To Be Against Bailout Of Struggling Investment Bank

(AP)  U.S. Treasury Secretary Henry Paulson is against any use of government money to bail out Lehman Brothers Holdings Inc., a person familiar with his thinking said Friday.

Lehman Brothers was racing to find a buyer two days after it laid out a restructuring plan it said would raise badly needed money it lost on bad bets in real estate holdings.

The No. 4 U.S. investment bank has lost almost $7 billion in the last two quarters alone, primarily because of wrong-way bets on mortgage securities and other risky investments.

The person said Paulson, who played a major role in engineering the government-back Bear Stearns bailout in March, believes the Lehman situation is different in two critical aspects. The person spoke on condition of anonymity given the sensitivity of negotiations.

The person said Paulson believes that financial markets have been aware of Lehman's troubles for a long time and have had time to prepare.

A second difference is that the Federal Reserve is now allowing investment banks to borrow directly from the Fed just as commercial banks can do.

"Given those two things, he is adamant that there be no government money in the resolution of this situation," the source said.

Paulson played a major role not only in the sale of Bear Stearns to JP Morgan Chase & Co. last spring, a deal in which the Fed put up $29 billion in loans, but also in the government takeover last Sunday of mortgage giants Fannie Mae and Freddie Mac in which Treasury has pledged to provide up to $200 billion in capital to the two companies if needed.

[whitemale08]

Get ready for a stock market crash Monday morning to the 10,000 range; Black Monday!

Unless the PPT (Plunge Protection Team) steps in.

[magoo2u1]

"Ka-ching! The American taxpayer/investor loses again! Follow the money... who wins here is way more important than who loses. "

And that is what ticks me off at the Republicans right now. Who wins is fat cat wealthy thieves, who loses is me. The ability to go to an emergency room is not the same thing as having health insurance (Bush admin suggested re-classifying un-insured as insured ''cause they can be treated in ERs).

[wogerwabbit]

Ka-ching! The American taxpayer/investor loses again! Follow the money... who wins here is way more important than who loses.

[brianbwb-2009]

"U.S. Treasury Secretary Henry Paulson is against any use of government money to bail out Lehman Brothers Holdings Inc., a person familiar with his thinking said Friday."

Lehman will take a page from Royal Dutch Shell, some cocaine, a few hookers, and a 10% under the table "finder''s fee," and Paulsen''s press staff will be looking for ways to spin his stated opposition to the bailouts into the opposition to those who oppose the bailouts.

And the news media will play right along, not missing a single beat.

[payasyougo]

"Source: No Gov''t Funds For Lehman Bros."
----
That is fantastic! Most everything the government gets its hands in fails.

Maybe without the threat of the stock going to zero w/ the governments help they''ll be able to find a suitor.

[whitemale08]

It''s a lie! Lemon Brothers will get the funding because the derivatives attached to their "debt assets" is so huge and inner-connected that it qualifies as "too big to fail".

But it doesn''t matter because the entire Global Financial System is FINISHED!!!

[random_radar]

Lehman investors obviously have not greased the right palms enough. Better get to work on it this weekend so they can announce your bailout Monday.

Choose your weapon--the golf carts and prostitutes are ready!