2  Merrill Lynch and Bear Stearns itself ceased to exist as independent entities and were absorbed into existing bank holding companies, with some form of government benefit facilitating the acquisition. 5 And, of course, as Fannie Mae and Freddie Mac teetered on the brink of failure, they were placed into government conservatorship, with accompanying full government guarantees of their liabilities.
The absence of an option for orderly resolution was faced head-on in the case of Lehman Brothers, whose bankruptcy in September moved the financial crisis to its most acute phase.