Larry Ball has an important new monograph
arguing, contra Bernanke, that during the recent financial crisis, the Fed could have saved Lehman Brothers but, unadvisedly, chose not to. Here
, James Stewart of the NY Times
covers the Ball piece, and it includes this tidbit:
an internal Fed team assigned to value Lehman’s collateral reached a preliminary finding that the firm was narrowly solvent and the Fed could have justified a loan. But everyone was too busy to listen, and the report was never delivered to Mr. Geithner, Mr. Bernanke or Mr. Paulson. This is consistent with Professor Ball’s findings.