If Bear did not go insolvent
Warren Buffet invested $5B in GS after it became a bank holding company.
If Bear Stearns shored up capital and didn't face insolvency prior to being bailed out, would it have prevented Lehman from going under? Would it have stopped the domino effect or would it have been something like final destination where death skips over the one firm and move onto to the next in line?
Wanted to see what you guys thought about it. If Bear didn't go down by receiving an investment from WB, would that have made it easier for Lehman to raise capital thus preventing its downfall?