What Has Changed Since Lehman Failed?

A week from Sunday, it will be five years since Lehman Brothers filed for bankruptcy, sparking the biggest financial crisis since the nineteen-thirties and a seven-hundred-billion-dollar bank bailout. In a recent interview with Andrew Ross Sorkin, of the Times and CNBC, Hank Paulson, the man who, as Treasury Secretary, was primarily responsible for the rescue of Wall Street, expressed outrage—or at least misgivings—about the fact that many of the bankers whom the taxpayers rescued promptly turned around and gave themselves huge bonuses. “To say I was disappointed is an understatement,” Paulson said. “My view has nothing to do with legality and everything to do with what was right, and everything to do with just a colossal lack of self-awareness as to how they were viewed by the American public.”

...read more