Signe

Alternative Bailout Plan: Good and Bad Ideas

Correction: Wachovia did not go under.
Also, the reason why Lehman and Wamu failed is because their lenders demanded more collateral for loans made to these two institutions for mbs or cds. These loans were called because the "value" of the collateral currently posted by Lehman and Wamu had declined -even though the payments on the mbs posted as collateral were current.