Feds Come to the Rescue?Yet Again

by Derek Loosvelt | September 19, 2008

A crazy week on Wall Street—which saw Lehman Brothers go bankrupt, Lehman get aquired, Bank of America buy Merrill Lynch, AIG almost dissolve, AIG saved by the Feds, Morgan Stanley rumored to fail, Morgan Stanley enter merger talks with Wachovia, Wamu go up for auction, the Dow nosedive, the Dow skyrocket—ended with perhaps the most radical financial move in years: the Feds temporarily banning short selling and backing $50 billion in money market funds as well entering talks to buy up distressed mortgages, putting the U.S. government on the hook for up to $1 trillion. This was indeed good news for banks in distress, and the U.S. stock market reacted with making a huge leap to end the week on a high note.

Filed Under: Finance


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