As Lehman Brothers raced to find a buyer on Saturday, U.S. government officials and Wall Street chieftains mapped out options to prevent an abrupt collapse of the crippled bank and arrest the downward spiral threatening other financial companies.<\/p>\n
Several possibilities began to emerge as top Wall Street executives met under the guidance the Federal Reserve and Treasury Department. One would involve major banks and securities firms providing a financial backstop to facilitate a sale of Lehman. Another option would involve an agreement among Wall Street players to keep trading with Lehman as the bank seeks an orderly liquidation.<\/p>\n
Those briefed on the talks said the situation was still fluid and other options could emerge.<\/p>\n
Adding urgency to the discussions were growing concerns that other big financial institutions like the insurance giant American International Group and Merrill Lynch might face a similar crisis and also need billions of dollars in capital to strengthen their businesses.<\/p>\n
The spreading troubles were the latest sign that even the government’s extraordinary interventions into private enterprise during the last year have not been enough to halt the unraveling of the financial system.<\/p>\n