Financial Times FT.com

No Fed bail-out this time round

By Krishna Guha in Washington and Henny Sender in Hong Kong

Published: September 12 2008 15:28 | Last updated: September 12 2008 19:23

Six months ago the US authorities put $29bn of public money at risk to help secure a rescue takeover of failing investment bank Bear Stearns by JP Morgan Chase.

Today the Treasury and the Federal Reserve refuse to put any public money on the table to help close a rescue takeover for Lehman Brothers, even though it is also an investment bank and it is bigger than Bear was. So what has changed?

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