CompoundInterestFan
Recycles dryer sheets
- Joined
- Jan 20, 2007
- Messages
- 222
Fed Repaid JPMorgan $87 Billion for Lehman Financing - Markets * US * News * Story - CNBC.com
"Lehman and the New York Fed had requested the advance, known as a "commencement date advance" and the New York Fed repaid it, according to filings. In effect, the New York Fed lent Lehman the funds."
I'm not sure I understand this, but it sure sounds like the Fed paid $87 bil to help facilitate the sale of Lehman. How is this different than a bailout, I guess besides the fact that Lehman won't be around anymore? Whether the Fed paid to bail them out or "help underpin trades," they still spent the money.
"Lehman and the New York Fed had requested the advance, known as a "commencement date advance" and the New York Fed repaid it, according to filings. In effect, the New York Fed lent Lehman the funds."
I'm not sure I understand this, but it sure sounds like the Fed paid $87 bil to help facilitate the sale of Lehman. How is this different than a bailout, I guess besides the fact that Lehman won't be around anymore? Whether the Fed paid to bail them out or "help underpin trades," they still spent the money.
