http://www.nytimes.com/2014/09/30/business/revisiting-the-lehman-brothers-bailout-that-never-was.html


[………]


“We had lawyers joined at our hips,” said one participant. “And they were very 
helpful at framing the issues. But they never said we couldn’t do it.”

As another participant put it, “It was a policy and political decision, not a 
legal decision.”

[snip]

“There is close to universal agreement that the demise of Lehman Brothers was 
the watershed event of the entire financial crisis and that the decision to 
allow it to fail was the watershed decision,” Alan S. Blinder, an economics 
professor at Princeton and former vice chairman of the Fed, wrote in his 
history of the financial crisis, “After the Music Stopped.”

“The Fed has explained the decision as a legal issue,” Mr. Blinder said in an 
interview. “But is that true or valid? Is it enough? Those are important 
questions.”

[………]
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