Why Lehman Brothers Was Let Go

Because Lehman Brothers was not “too big to fail” (*).

All in all, had the US Treasury intervened to save Lehman too, it would have been even more worrying, as it have signalled a green light for further recklessness.

(*) Given what has happened in the past with companies filing for bankruptcy protection in the US, the actual complete demise of Lehman Brothers may be slightly exaggerated