By September 8th, 2008 the fact that Lehman was moribund became even clearer. The New Federal Reserve Bank was informed that Lehman’s tri-party repo exposure was at roughly $200 billion. Before its collapse Bear Stearns’s exposure had been at most $80 billion. Lehman was working on an investment by Korea Development Bank to raise capital.
On September 9th news broke that there would be no investment from Korea Development Bank. Lehman shares fell by 55 percent.
Treasury Department Chief of Staff Jim Wilkinson at 5:20 p.m emailed Michelle Davis, the assistant secretary for public affairs at Treasury, to express his distaste for government assistance: "We need to talk… I just can't stomach us bailing out lehman… Will be horrible in the press don't u think."