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Originally Posted by Danzig
i know in freddie and fannies cases the govt also said they have always assured people that bankers in general are insured by the govt-the whole full faith deal.
whether lehman qualifies is another story. guess it depends on whether the feds think lehman would affect more than just the national economy, as they mentioned global investing/economy regarding mac and mae.
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With Lehman it definitely does not qualify affecting the national economy but the worry is all of the counter-party risk involved with Lehman on various financial instruments. I hear that the Feds aren't involved as of yet with Lehman and that there are 3 suitors: Barclays, B of A and HSBC. Expect the equity will go down to basically nothing (it is almost there) and then a firm or more than one firm will start to divvy up Lehman ......
WaMU, National City, Wachovia, Merrill, and hundreds of smaller financial institutions remain very questionable on their future outlook...
Its a mess.