Given the falling value of its stock, J.P. Morgan demanded large postings of collateral to back up daytime triparty repo risks. By Tuesday, September 9, allowing for liens on its assets, Lehman’s liquidity pool was down to $22 billion. Two days later, on Thursday, September 11, Lehman was still posting $150 billion as collateral in the repo market.19 But then confidence broke. S&P, Fitch and Moody’s all downgraded Lehman. Its share price fell and with that went its standing in the repo markets; $20 billion in repo did not roll and J.P. Morgan demanded $5 billion in collateral to sustain even
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