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Fannie Mae

Bernanke, in new memoir, recalls Lehman's 'surreal' failure

Ben Bernanke recalls the September weekend in 2008 when regulators sought desperately but in vain to save the investment bank Lehman Brothers as a "terrible, surreal moment." "We were staring into the abyss," the former Federal Reserve chairman writes of the tense negotiations, led by Timothy Geithner, then head of the New York Fed, and Henry Paulson, then Treasury secretary. Regulators hoped to find a buyer for Lehman and avert what would become the largest bankruptcy in U.S. history, which ignited the worst financial crisis since the Great Depression. A "blur" is how Bernanke describes the events. Bernanke recalls the episode in a 600-page memoir,...