Financial crisis

There was a really interesting article by Timothy Geithner in the Sunday Times last weekend say Harris & Co accountants Northampton. Geithner was the Head of the Federal Reserve Bank of New York in early 2009. He was working closely with President Obama to resolve the financial crises at Bear Stears, AIG, Bank of America and Lehman Brothers. He managed to sort out the first three but Lehman Brothers proved particularly difficult.

 

According to Geithner, he had lined up Barclays to take over Lehman Brothers and avoid a melt down of the financial system. Apparently on the Labor Day weekend in 2009, Lehman Brothers was down to its last $2b at the close of business on the Friday. Early on the Sunday morning, Geithner claims that Callum McCarthy of the FSA told him that the British regulators would not approve the deal. On Monday morning Lehman Brothers collapsed, taking the financial system with it.

 

So the entire financial crisis was our fault according to the Americans………….