Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he must bail out US investment bank Lehman Brothers or face global financial collapse, but her advice went unheeded.
Sources close to Mrs Lagarde said that she had called the US Treasury Secretary - a close personal friend - well before the ailing bank's collapse imploring him to act, but he chose not to.
Lehman Brothers' demise sparked the biggest shake-up on Wall Street in decades and sent shock waves around the world that triggered a massive bailout plan in Britain and Europe.
Mrs Lagarde - attributed with playing a key role in brokering a bailout deal among G7 finance ministers in Washington last weekend - dubbed Mr Paulson's decision to let the bank go under "horrendous" as it triggered panic in markets and banks to the brink of a 1929-style financial meltdown.
In an interview with the Daily Telegraph, she warned that the world's hedge funds could be the next institutions to be hit by the financial turmoil.
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1 comment:
Paulson doesn't know what he doing and wasn't put in the the job for one reason and that was to steal and give billions to Goldman Sachs. This crime scam was set up by the White House back in 2000 when Bush stole the election.
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