The former chief to Lehman Brothers announced that the lack of government assistance was a leading cause in why the lending institution failed during the financial crisis in 2007, unlike other banks that received bailout money to help stay afloat. This announcement came at a hearing with a panel that is investigating the leading causes of the financial meltdown.

While the uncontrollable forces in the market and the inconsistent rumors that Lehman’s didn’t have the financial backing that it required to support its investments was the real reason behind the company closing down, the proposals that Lehman Brothers had put forth to federal regulators were all turned down.

Lehman Brothers Blame Government

Turning these proposals down is believed to be a forcing agent in the collapse of the company. Without the federal help that other major banks received, Lehman’s had no choice but to crash and burn. At least that is the way the former chief is seeing it.

There are many things that could have happened, but in the long run it would probably be best if more of the banks had been refused bailout money. The financial crisis was bad but the bailouts have caused even more debt to pile up.