Banking

Making Sense of Lehman Through Bernanke

His new book doesn't really answer why the bank was allowed to fail.

Why didn't he ride to Lehman's rescue?

Photographer: Andrew Harrer/Bloomberg

I confess to being slightly obsessed with the schizophrenic zig-zagging by the U.S. authorities that arguably made the credit crisis much, much worse. The feds underwrote the bailout of Bear Stearns, then let Lehman Brothers become the biggest bankruptcy in U.S. history, and the very next day rescued American International Group, and leaving the world of finance bewildered and confused. After reading the latest memoir on the period, I'm still not convinced the principal actors in the drama are being entirely frank about what happened behind the scenes of the real Lehman moment.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.