What did the government get in the Bear Stearns deal? Bupkis. What do they get in the AIG deal? The company. A far better deal for the US taxpayer.
Fallout from the Lehman deal is being felt along Main Street this morning as money market funds holding short-term Lehman debt break below their $1 constant share price. That news put a big damper on the overnight rally in US stock futures.
Change on Wall Street continues as the Darwinian process of survival of the fittest unfolds. CNBC reports that Morgan Stanley, one of the last men standing may be looking at merging with a bank to secure a steady funding source.
