India Takes Over Shadow Lender to Save Financial System From ‘Lehman Moment’

The government is trying to keep Infrastructure Leasing & Financial Services’ debt problems from destabilizing the country’s financial system

The Indian government is taking over and investigating struggling shadow lender, Infrastructure Leasing & Financial Services Ltd., to try to keep its debt problems from destabilizing the country’s financial system.

In what some are calling a “Lehman moment”—referring to how the failure of Lehman Brothers in 2008 signaled the shocking realization of spreading debt problems in the U.S.—India has decided to save the infrastructure lender.

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