We Did Everything We Could to Save Lehman, Says Hank Paulson

The transcript discusses the challenges faced during the financial crisis, particularly the inability to save Lehman Brothers due to insolvency and lack of authority. It highlights the failed attempts to secure a deal with Barclays and the potential consequences if Merrill Lynch had failed. The TARP legislation's initial failure in Congress is noted, along with the efforts to obtain fiscal authorities. The current financial system is compared to the past, emphasizing stronger banks but fewer regulatory authorities.

What was a major challenge in saving Lehman Brothers during the financial crisis?

• Lack of interested buyers

• Too many buyers for Lehman

• Overcapitalization of Lehman

• Excessive regulatory support

What was the initial outcome of the TARP legislation in Congress?

• It passed unanimously

• It was never introduced

• It failed in the first vote

• It was immediately successful

Why was obtaining fiscal authorities crucial during the financial crisis?

• To increase bank profits

• To support foreign banks

• To prevent a financial meltdown

• To reduce government spending

How has the financial system improved since the crisis?

• Regulatory authorities have decreased

• Banks are better capitalized

• There is more dry tinder for a crisis

• Banks are less capitalized

What was a significant problem with the regulatory system during the financial crisis?

• It was too lenient on small banks

• It was overly strict

• It was outdated and insufficient

• It was too modern