Indeed, right after the bank’s failure was announced, the US Secretary of the Treasury himself confirmed that, “I never once considered that it was appropriate to put taxpayer money on the line in resolving Lehman Brothers”. 1 The timing of the Lehman crisis also played a key role.
Further, issuance of the CP had to be carved out of the working capital (fund based) limit and it was also stipulated that CP could be issued in multiples of Rs. 25 lakh and the amount to be invested by a single investor should not be less than Rs 1 crore. These guidelines had been reviewed from time to time.