- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Wednesday's Economic News Crunch Could Tilt Markets
- Call Me Crazy: Confessions of a Black Friday Shopper
- US Firms Hit by Payroll Taxes at Exactly the Wrong Time
- Citi Mortgage Reveals Something the US Treasury Won't
- Fed Sanguine About US Recovery, Worried on Jobs
- MGM Pitches Sale to 20 Suitors, Including News Corp
- Holiday Guide to This Season's Smartphones
- Amended Berkshire Filing Reveals No 'Secret' Holdings
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- NBA D-League On The Rise
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- NBA D-League On The Rise
- Obama Reiterates Commitment to Boost US-India Ties
- Australia Wheat Exporters Face Challenges: GrainCorp
- Trading Block
- Stifling Anger at Work Can Kill, Survey Finds
- Japan Export Rebound Eases Fear of New Recession
- Oil Slips Below $76 On Revised US GDP Data
- Gold Hits Record on Dollar, India Buying Talk
Text Size 
The Federal Reserve called Credit Suisse last month to check a rumor that the bank was preparing to pull a line of credit for Lehman Brothers, the Wall Street Journal reported on its web site on Thursday.
Credit Suisse told Fed officials the rumor was unfounded and that the bank had no intention of pulling the line of credit, people familiar with the matter told the paper.
The Fed acted this way to try to stop the spreading of rumors like the ones which eventually forced the sale of Bear Stearns in March to JP Morgan [JPM
Loading...
()
] to save it from collapse, the Wall Street Journal said.
Last month, the Securities and Exchange Commission put a limit on naked short-selling -- short-selling of shares without borrowing them first -- of 19 financial stocks, including that of Lehman [LEH
Loading...
()
], to prevent abuses, but this rule expired last week.
Lehman Brothers, which has more than $60 billion of mortgage and mortgage security exposure, is under pressure to raise capital. Analysts have said the Wall Street bank could write down $4 billion and some have predicted that Lehman will be the next financial institutional to fail.
But others said the Federal Reserve will not allow it to fail as it is too big and its collapse would pose a risk to the whole U.S. banking system.
Print
Email
- Remember when auto shows were major events where new models could generate buzz?
- CNBC’s Mike Huckman visits a cutting-edge plant to see how the flu vaccine of the future is being made.
- People who bottle up their anger at work are up to five times more likely to suffer a heart attack, a study found.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes