Federal takeover of Fannie Mae and Freddie Mac: Difference between revisions

With a growing sense of crisis in U.S. financial markets, the conservatorship action and commitment by the U.S. government to backstop the two GSEs with up to US$200 billion in additional capital turned out to be the first significant event in a tumultuous month among U.S.-based investment banking, financial institutions and federal regulatory bodies.{{According to whom|date=January 2017}} By September 15, 2008, the 158-year-old [[Lehman Brothers]] holding company filed for bankruptcy with intent to liquidate its assets, leaving its financially sound subsidiaries operational and outside of the bankruptcy filing. The collapse was the largest investment bank failure since [[Drexel Burnham Lambert]] in 1990.<ref name='Lehman Brothers-Who We Are'>[https://web.archive.org/web/20080704140919/http://www.lehman.com/who/index.htm Lehman Brothers – Who we are] Retrieved September 15, 2008''