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Fuld knew that Lehman, as the smallest of the remaining Big Four, was clearly next on the firing line. The GSEs were such a huge, obvious problem that I knew we would somehow take care of them, but Lehman presented another level of potential trouble.23 Clearly fearing its culpability, however, the military had already sent troops into Torishima in March and April 1996 but had recovered only 192 of the shells. Blankfein immediately went to work organizing a small army of the firm
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Willumstad had hoped that Jester, using the authority of the government and his powers of persuasion as a former banker, would have been able to finesse the task easily. At a primitive level, the Fed actually can monetize any amount of debt the Treasury issues, up to the point of a collapse of confidence in the dollar.
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