A lot happened one year ago this week. It’s mind blowing to think about just how far our country’s financial system has come in just one year. In one year we have gone from the brink of collapse to the cusp of recovery.

On the week of September 15, 2008, the Dow Jones Industrial Average (DJIA) plummeted by more than 500 points on the news of Lehman Brothers’ bankruptcy, finishing at its lowest point in over two years. Yet, at the closing bell this afternoon, the DJIA soared to the highest mark in 11 months.

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The Federal Reserve and the Treasury Department are “actively helping” Lehman Brothers search for a buyer, a deal that the government hopes will happen this weekend, according to the Washington Post. Before you get too worked up, the Fed and the Treasury Department are searching for a private buyer for Lehman, one that does not involve taxpayer support. One possible scenario could involve multiple buyers which would take control of different parts of the company.

Unlike Bear Stearns, which suffered heavy losses when investors stopped investing in them, Lehman has been the victim of their own investments in real estate and mortgage backed securities. Although the government fully participated in the acquisition of Bear Stearns as well as the takeover of Fannie and Freddie, the same will be highly unlikely for Lehman Brothers: Read the rest of this entry »