Saturday, September 13, 2008

Emergency Meeting on Lehman Rescue Resumes

Deliberations resumed Saturday at the New York Fed today as leading Wall Street executives met to try and find a solution to the latest crisis, Lehman Brothers.

Germany's Finance Minister Peer Steinbrueck urged that a resolution be found to the Lehman Crisis before Asian markets open Monday, warning ominously, "the news that is coming out of the U.S. is bad."

It is believed that participants in the meeting also have on their agenda discussions about problems at American International Group and Washington Mutual. AIG's shares dropped about 31 percent on Friday.WaMu has reported severe losses because of the mortgage crisis.

According to WSJ, in addition to New York Fed President Timothy Geithner, government officials in attendance included Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Christopher Cox. The Wall Street executives included Morgan Stanley Chief Executive John Mack, Merrill Lynch Chief Executive John Thain, J.P. Morgan Chase CEO Jamie Dimon, Goldman Sachs Group CEO Lloyd Blankfein, Citigroup Inc. head Vikram Pandit and representatives from the Royal Bank of Scotland Group PLC and Bank of New York Mellon Corp.

Other industry leaders that attended were Credit Suisse CEO Brady Dougan, Morgan Stanley Chief Financial Officer Colm Kelleher, Citigroup Chief Financial Officer Gary Crittenden, UBS AG Chief Risk Officer Thomas Daula, J.P. Morgan investment bank co-head Steve Black and Goldman Sachs Co-president Gary Cohn ... In all, about 30 banks were represented
-EPJ Newsdesk

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