The bankruptcy of Lehman Brothers was the pivotal event of the 2008 financial crisis. Ever since the bankruptcy, there's been heated debate about why the Federal Reserve did not rescue Lehman in the same way it rescued other financial institutions. The Fed's leaders strongly asserted that they lacked the legal authority to save Lehman because it did not have adequate collateral for the loan it needed to survive. In his new book, "The Fed and Lehman Brothers", Laurence Ball argues that the official narrative of the crisis is wrong; the Fed could have rescued Lehman but chose not to because of political pressures and an underestimation of the damage the bankruptcy would do to the economy. In this video, Mr. Ball, a professor of economics at Johns Hopkins, discusses insights from his book. Sponsored by the Global Financial Markets Center.
Environmental Law Newsletter
Read about environmental justice, adaptive regulation, novel legal questions stemming from drone use in marine science, and more.
Gift to fund new Immigration Clinic
» Students will develop skills and deepen knowledge working with clients seeking asylum or facing deportation.
Laurence Ball | The Fed and Lehman Brothers
- Stoa '11, author of new book on marijuana industry, says appellation system would benefit small farmers Wall Street Journal
- Ciocchetti '02 tells University of Maine students to think beyond "checking boxes" Maine Campus
- Friedman '97, exec VP and GC at JPMorgan Chase recognized as "transformative leader" in Corporate Counsel's National Women in Law honors Corporate Counsel