Epstein Secrets

lateral, so those lenders may have to dump it immediately upon receipt. Having to unload a large portfolio of securities on the Monday afternoon of Lehman's bankruptcy is not a picnic. Better to refuse rolling over the loan on Friday. As one reads through Duffie's analysis, an insistent voice springs

lent. Lack of desire to issue new equity and bet the farm instead, rather than the impossibility of obtaining new equity, is a distinct possibility. Bear Stearns' existing equity holders were the ones to object to the deal, not the prospective buyers. Similarly, why can't banks sell assets? Well, they are sai

. It's the news that matters. To the extent that such bailouts work, they mainly demonstrate the regulators' commitment to bailing out. Bailing out Bear Steams sent an unintended "don't' worry" message to Lehman Brothers creditors. (Summe (2010, p. 87) gathers considerable evidence on this point.) Greece d

th the broker. c. In November 1995, Sam Wyly spoke directly to Schaufele and offered to let Schaufele's firm, Lehman Brothers, cancel a transaction Lehman had recently entered into with the Wylys' Offshore System since Sam Wyly "didn't want to hurt Lehman." d. In 2001, the then-CFO of the Wylys' fami

ere these Issuer Securities were held. Over the relevant period, these finns were C.S. First Boston, Lehman Brothers, Bank of America Securities and Bear Steams. The accounts at C.S. First Boston, Lehman Brothers and Bank of America Securities were all serviced by Schaufele, the Wylys' longtime broker, who a

ank, after charting the opposite course for three years with disastrous results, has adopted policies similar to the Fed's — and averted a potential Lehman-like collapse in Europe. (Mitt Romney's two most prominent academic advisers, Glenn Hubbard and Gregory Mankiw, seem to recognize this, but Romney

has been building for a long time. But the alarm bells didn't start ringing until June, 2007, when two hedge funds of the New York investment bank Bear Steams lurched toward collapse because of their extensive investments in mortgage- backed securities. They were forced to dump assets as the trouble spread