Bush to 'minimise Lehman shock'

Monday, 15 September 2008 12:00

George Bush today admitted the US government would act to minimise shocks stemming from the collapse of Lehman Brothers.

The United States bank filed for chapter 11 bankruptcy last night as a rescue package failed to materialise, as potential buyers - Barclays and Bank of America - walked away as the US government was not willing to put up state guarantees.

Speaking today, at a reception for the president of Ghana, Mr Bush said the US government would act to minimise the effects of shocks to the financial systems.

"The White House is focused on health of financial systems," the US president said.

"I know Americans are concerned about adjustments. We are working to reduce disruptions and minimise effects on the economy."

The US president admitted the current instabilities were a pain for people concerned about investments and about losing jobs as a result of firms collapsing.

Presidential hopeful Barack Obama has laid the blame for the collapse on the White House.

He claimed the Bush administration's economic policy led to the current turmoil.

Rival John McCain, meanwhile, blamed an absence of regulation.

The Bush family is particularly hit by the collapse of Lehman Brothers, as last year George Bush's brother Jeb Bush was hired by the investment bank as an advisor to its private equity business.

A second cousin of the president, George Walker, also works at Lehmans as the global head of its investment management division.

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