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by momofuku
1151 days ago
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For the life of me, I'm not able to understand why none of these lists include Lehman Brothers? A commenter below posted: >Lehman Brothers is also not included because, even though it was a US bank, it was an investment bank with no FDIC insured deposits. It was around the size of all of this year's failures, combined. So does this mean, that since Lehman had no customer deposits, it doesn't count? |
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The liquidation of Lehman was handled by the Treasury department (and a bankruptcy court), not the FDIC, and Congressional involvement was necessary to pass a bill to finance the resulting "bailout". The FDIC maintains its own fund to pay back depositors.
It might sound like a pointless technicality, but it's really not. It would be like asking why an NHSTA report doesn't include plane crashes.