Considering how Wamu and Lehman shares have dropped recently, I’m leaning towards the Fed making an example out of those institutions.
Lehman has access to the discount window where their can park their junk for some time. Bear Stearns didn’t have that option.
I believe that Bear Stearns was bailed-out with the hope of stemming the crisis. But now that Fannie and Freddie have been taken over, it’s time to let the invisible hand of market work its magic.
