When Wall Street Nearly Collapsed

Would panic prevail? That was the question gripping the world in the days surrounding the fall of Lehman on Monday, Sept. 15, 2008. One year after that terrifying time, the people who struggled to cope with the financial crisis share what they were thinking as chaos broke out. Neel Kashkari, former assistant secretary of the Treasury, states: We had been firefighting for over a year. We were tired, numb to bad news, but still focused. We had just taken over Fannie Mae and Freddie Mac, and I had flown to Asia to explain our actions to foreign government officials. I returned Sunday to learn that Lehman was on the verge of bankruptcy. I was surprised the next emergency was already upon us. Lloyd Blankfein, CEO of Goldman Sachs, states: What I remember most was coming into the office on weekends and, without my having made a call to anybody, I found everyone on our team at work. Everybody realized there was a crisis looming that was historic. Bob Willumstad, CEO of AIG, states: I thought I was doing the right thing for the shareholders by stepping in and trying to fix the company. After I was replaced, I was actually unaware that I was entitled to a $22 million severance package. When I was told two days later, my reaction was, How could I possibly take $22 million for three months' work?