Wall Street

Let's Put the Lehman Bailout Debate to Rest

Rescuing the securities firm wouldn't have mattered. The financial crisis was coming no matter what.

Sold for scrap.

Photographer: Oli Scarff/Getty Images

An old meme in new clothing has been circulating recently: The Federal Reserve could have and should have saved Lehman Brothers. It had the resources, the legal authority and the obligation to do so; its failure to act let a modest financial fire become a full-blown credit crisis.

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