Paulson Defends Refusal To Bail Out Lehman

11/22/2008 05:12 am ET | Updated May 25, 2011
  • New York Times

It was the weekend of Sept. 13, and the moment Treasury Secretary Henry M. Paulson Jr. had feared for months was finally upon him: Lehman Brothers was hurtling toward bankruptcy -- fast.

Knowing that Lehman had billions of dollars in bad investments on its books, Mr. Paulson had long urged Lehman's chief executive, Richard S. Fuld Jr., to find a solution for his firm's problems. "He was asked to aggressively look for a buyer," Mr. Paulson recalled in an interview.

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