"People inside Lehman say if the firm can survive the current crisis, it will change dramatically from the risk-taking bond house that turned huge profits up until this year — and now massive losses," Gasparino notes.
"No one expects Lehman to implode the way Bear [Stearns] did in March, given the strength of its management and its access to the Federal Reserve discount window which now allows emergency borrowing by Wall Street firms," he says.
Earlier that day, Lehman announces an executive shuffle: Jeremy Isaacs, longtime CEO of international operations, will retire by the end of the year; and Andrew Morton, global head of fixed income, will leave to "pursue other interests."
What You Were Reading:
Treasury officials say the U.S. expects to buy $5 billion of Fannie Mae and Freddie Mac mortgage-backed securities within the next month, as part of its takeover of the mortgage finance giants.