Lehman Was Solvent, Could Have Been Saved Say Fed Officials

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Mark Melin
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A key moment that triggered the financial crisis, when Lehman Brothers was allowed to fail, is now being called into question. The comfortable line of thought used by U.S. Treasury and Federal Reserve officials was that Lehman was insolvent and could not be saved.  The decision was a legal consideration, not a policy decision. Recent interviews published in The New York Times suggest otherwise. The Fed explored all alternatives to avoid Lehman collapse “We explored all available alternatives to avoid a collapse of Lehman, but the size of its losses were so great that they were unable to attract a…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

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