Macroeconomics 13th Edition by William Baumol ,Alan Blinder

Exercise 1

(More difficult) In March 2008, the Fed helped prevent the bankruptcy of Bear Stearns. However, in September 2008, the Fed and the Treasury let Lehman Brothers go bankrupt. What accounts for the different decisions ( Note: You may want to discuss this question with your instructor and/or do some Internet or library research. The answer is not straightforward.)