lehman brothers when it collapsed two years ago. investors focused on other personnel changes, too. oracle was the biggest percentage gainer of the s&p 500. as we mentioned, former hewlett- packard c.e.o. mark hurd will join the company. oracle shares saw rallied almost 6% on heavy volume. tonight, it's at its highest price since early august. hurd joins oracle as co- president, replacing charles phillips. hurd also gets a seat on oracle's board of directors, bringing with him technology hardware experience. earlier this year, oracle completed its buyout of sun- microsystems, moving oracle into the computer server business. hurd also has overseen several big deals, including h-p's latest buyout of palm. shares dropped 1% today. as we mentioned, h-p has sued its former boss, claiming he won't be able to perform his duties at oracle unless he discloses confidential information about hewlett- packard. merger talk didn't take labor day off; it was just delayed one day. convenience store operator casey's hit another new high. it has an offer on the table for $38.50 per share, but says a new bidder has come forward at $40 per share. the

. >> the dow and s&p 500 rose to the highest in the month as regulators wanted more time to beef up books. and today is the second anniversary of the collapse of lehmans. >> waiting for superman, a documentary about failing u.s. schools. highway says the u.s. isn't producing enough skilled workers like microsoft. toyota says the new models won't be available until 2012. >> governor swarzenegger is in tokyo is making a songer pitch for business ties with california. he rode a high speed train to tout the state's plan for the high speed rail system. he says it's an important component to california's infrastructure. trade mission to asia takes him to south korea tomorrow. he hopes it will boost california's sagging economy. >>> supervision are deciding whether to put a hold on installation on installation of any more smart meters. it would only apply to the unincorporated areas of the county. supervisors say the community has questions about the radiation emitted by smart meters. they want a team to study the data and have pg&e pay for it. watsonville and fair affects and marin counties recently passed moratoriums. >> a famous eatery has made its last

lehman won't allow it. i'm suring the evaluation of the assets didn't drop in a matter of days so s to, you know, change the collateral equation. but i also see in this chronology that mr. hoyte at treasury actually says on july 11th, the fed has plenty of legal authority to provide liquidity. if we choose not to, i doubt we would, but he talks about the authority. there's assessment about impact. action about acknowledgment, for example, there would be much more from the september 11th memo saying it would be much more complex to unwind because lehman has twice as many positions. there's a number of other studies in here that says look there's going to be tremendous impact. the size of the triarty repo book was much larger than bears. about $180 versus $52 mllion. from day one, you were saying legally not possible. looks like there's a heck of a lot of debate about whether or not to rescue, whether or not to provide for an orderly transition. and none of this was cut off by a legal opinion that says not possible. the legal opinion came about in this itance, you see the opposite, where apparently you're say

lehman. the question was would we continue those post-petition. we decided the answer would be s. on monday, september 15, in the evening -- i am talking about the petition by the parent -- we extended credit to the broker- dealer in the amount -- this is apartment -- of $60 billion across a primary dealer credit facility and open market operations. it was all fully secured. but i have a question -- >> i have a question. why was it not extended prior to that? >> the facilities were available to lehman precondition and post addition -- pre-petition and post-petition. mr. fuld is incorrect. there is a letter statin gthat --stating that these were available. they were used. $60 billion, then another $45 billion. there is a misunderstanding about what happened here. there is lending to the broker- dealer after the petition was filed and it was fully secured. that distinguishes this situation from the naked guarantee which was not secured and not limited and not within the authority of the federal reserve. >> i will return for more questions. first, the vice chair. >> thank you, mr. ch

s that were similar and what wachovia had -- part of my problem is i don't recall the discussion and i would like to get back to you on that. >> the lehman case is slightly different. although the media had said that the fed had given access banks to the discount window that was not exactly true. what was done was under 13-3 or special powers to deal with serious financial consequences, enable you to make available to investment banks funds from the fed for which you would be getting some kind of collateral. we were told by mr. fuller yesterday and no one disagreed with this that lehman brothers was solvent. it had plenty of assets and subject to a run. my question to him. i am hesitant to put words in his mouth when he responded, my question to him was what could the fed did the same thing with the discount window for banks as a matter of law? we will take all of your liquid assets as far as we put a value on them and we will monetize, provide the cash. so you can meet this run. mr. baxter said to me there is a way for the fed to do that but only if the fed board adopts a resolution of some kind which changes the nature of what they nor

s that were similar and what wachovia had -- part of my problem is i don't recall the discussion and i would like to get back to you on that. >> the lehman case is slightly different. although the media had said that the fed had given access banks to the discount window that was not exactly true. what was done was under 13-3 or special powers to deal with serious financial consequences, enable you to make available to investment banks funds from the fed for which you would be getting some kind of collateral. we were told by mr. fuller yesterday and no one disagreed with this that lehman brothers was solvent. it had plenty of assets and subject to a run. my question to him. i am hesitant to put words in his mouth when he responded, my question to him was what could the fed did the same thing with the discount window for banks as a matter of law? we will take all of your liquid assets as far as we put a value on them and we will monetize, provide the cash. so you can meet this run. mr. baxter said to me there is a way for the fed to do that but only if the fed board adopts a resolution of some kind which changes the nature of what they nor