KEY E-MAILS FROM THE FCIC FINANCIAL CRISIS INVESTIGATION

September 9, 2008 - E-mail from Treasury Department Chief of Staff Jim Wilkinson to Michelle Davis, assistant secretary for public affairs at Treasury

By September 8^th, 2008 the fact that Lehman was moribund became even clearer. The New Federal Reserve Bank was informed that Lehman’s tri-party repo exposure was at roughly $200 billion. Before its collapse Bear Stearns’s exposure had been at most $80 billion. Lehman was working on an investment by Korea Development Bank to raise capital.

On September 9^th news broke that there would be no investment from Korea Development Bank. Lehman shares fell by 55 percent.

Treasury Department Chief of Staff Jim Wilkinson at 5:20 p.m emailed Michelle Davis, the assistant secretary for public affairs at Treasury, to express his distaste for government assistance: "We need to talk… I just can't stomach us bailing out lehman… Will be horrible in the press don't u think."