1. On the afternoon of Sunday, Sept. 14, Dick Fuld, the CEO of Lehman Brothers, called Ken Lewis, the CEO of Bank of America, at his house in North Carolina to try to sell the investment bank to Bank of America. He got Lewis’ wife, who told him Ken wouldn’t call back. The ailing investment bank had no more options.
2. Just after midnight on Monday, Sept. 15, Lehman Brothers, the fourth largest investment bank in the United States, filed for bankruptcy.
3. Hank Paulson, secretary of the Treasury; Ben Bernanke, chairman of the Federal Reserve; and Tim Geithner, president of the New York Federal Reserve Bank were the three government officials in charge of the response to the financial crisis. They agreed that taxpayer money could not be put on the line for Lehman.
4. That same morning, Merrill Lynch sold itself to Bank of America, reducing the four remaining big, independent investment banks to just two: Goldman Sachs and Morgan Stanley.
Merrill Lynch CEO John Thain and Bank of America CEO Ken Lewis