The smarter way to handle Lehman Bros. would have been to make them into a commercial bank under the jurisdiction of Federal Deposit Reserve Board. Then the Fed could simply have taken them over and sold of the bits. That is what they have been doing for decades and doing it extremely well.
It would have taken less than 24 hours. That is how long it took Goldman Sachs to become a commercial bank so they could tap into the U. S. Treasury.
World economy on the verge of collapse? What a bunch of crap!!