Fed Acted on Lehman Rumor

Discussion in 'Wall St. News' started by THE-BEAKER, Aug 21, 2008.

  1. i have said all along this firm is insolvent.

    i think the rumours about another bank going under ( imf chief ) only add more fuel to the fire.

    i dont see any difference between bear and lehman.

    einhorn has been right all along.

    anyway here is the story::

    In an apparent attempt to prevent a repeat of the cascading rumors that helped sink Bear Stearns Cos., the Federal Reserve last month quietly called one major bank to see if it had pulled a credit line from Lehman Brothers Holdings Inc., people familiar with the matter said.

    Responding to a July rumor that Credit Suisse Group planned to pull a line of credit to Lehman, Federal Reserve officials called to see if it was in fact true, according to these people. Credit Suisse told Fed officials there was no truth to the rumor and it had no intention of ...

  2. it becomes almost impossible to tell who is right over time, since the extreme negative press is self fulfilling to some extent.