Did Lehman Need to Die?

Six years ago, Lehman Brothers was allowed to become the largest bankruptcy in history. I say “allowed” because it definitely could’ve been stopped. The quote above comes from a very interesting piece at the New York Times that reconstructs what led to the decision.

And yes, it was a decision. Not a force of nature or an act of god. Some say that AIG, Fannie and Freddie took precedence (given their systemic ties to everything), and it was too many bailouts at once. Others say Hank Paulson was under tremendous pressure and, in the end, he reverted to Goldmanite thinking – and Goldman never thought much of Lehman. We may never know the whole truth, but the above-referenced link gets pretty close.