GO
Loading...

The Financial Crisis: This Day—One Year Ago, Sept. 7

The US markets may be closed Sunday, but that doesn't stop rumblings and news on the financial front.

Lehman Brothers officials are hoping to finalize plans to raise capital and sell off bad debts sometime this coming week, Charlie Gasparino reports.

The specific aspects of the effort are still in flux, people close to the troubled financial say.

This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage

"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.

The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage

The purchase plan marks the first taxpayer cash use associated with the larger strategy of putting Fannie Mae and Freddie Mac into a government conservatorship.

The purchases will be on the open market and will be managed by a private investment manager appointed by the Treasury.

What the Experts Were Saying:

Treasury Secretary Hank Paulson discusses the Federal government's takeover of Fannie Mae and Freddie Mac.

Federal Housing and Finance Agency director James Lockhart discusses the government strategy for Fannie Mae and Freddie Mac.

Symbol
Price
 
Change
%Change
FNMA
---
FMCC
---