By Sept. 9, Lehman was falling apart. Two potential investors — Korea Development Bank and the Investment Corp. of Dubai — backed out. Two clearing banks, JPMorgan (JPM) and HSBC (HBC), demanded significantly more collateral from Lehman. Credit rating agencies Fitch and Standard & Poor’s put Lehman’s rating on a negative watch. And Lehman’s share price had collapsed to $7.79.
See the full article from DailyFinance titled “Lehman Report: Why the U.S. Balked at Bailing Out Lehman” by ABIGAIL FIELD.