The Fed Intended to Wind Down Lehman (BCS)

According to an article just published by Bloomberg, the United States Federal Reserve intended to wind down Lehman after the spiraling investment house spun into bankruptcy back in 2008. Citing a Fed lawyer testifying in Lehman’s lawsuit against Barclays Plc., Bloomberg said that the Federal Reserve lent Lehman’s brokerage $45 billion for an “orderly wind-down” after the company filed for bankruptcy. According to the article, Barclays BCS, based in London, ended up buying the brokerage less than a week after Lehman filed for bankruptcy protection in September 2008. New York-based Lehman, which claims the U.K. bank received an undisclosed windfall of $11 billion in the deal, is seeking to recover the money to pay creditors. Barclays has said the transaction was reviewed by both sides. For more information, please click here.