Wednesday, October 01, 2008

Did House of Bush Sink House of Cards?

Business pundits now call the government's non-intervention with Lehman Brothers a serious mistake Lehman's failure triggered collection on billions in risky credit bets, many held by giant insurer AIG. AIG's failure would've sent an even bigger tsunami through the markets, thus Hank Paulson and company stepped in.

Why didn't the Bush administration step in with Lehman? Two Bush family members work for Lehman Brothers. Cousin George H. Walker is global head of the Investment Management Division at Lehman Brothers Holdings Inc. In this role, Mr. Walker oversees Asset Management, including Neuberger Berman, Private Investment Management and Private Equity businesses.

Jeb Bush, brother of the President of the United States, is an advisor to Lehman Brothers' private equity business. Reuters reported his hiring last August. Despite the bankruptcy, $2.5 billion in Lehman bonuses remain on track.

How might George W.'s bailing out the firm with his brother and cousin play on Main Street? Did they let if fail to give John McCain a fighting chance to win? Or were they trying to save the incredibly damaged Bush brand, hoping for an eventual Nixon like recovery? Might they sacrifice our economy to save their political franchise? A pox on any house that would do such a thing...

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