September 13, 2008 / 1:57 AM / 9 years ago

UPDATE 2-Fed holds emergency meeting on market developments

(Adds participants, paragraph 3; additional background, paragraph 4)

WASHINGTON, Sept 12 (Reuters) - The Federal Reserve Bank of New York held an emergency meeting on Friday evening with top financial market representatives to discuss recent market developments, a Fed official said.

“Senior representatives of major financial markets met at the Federal Reserve Bank of New York Friday evening to discuss recent market developments,” a Fed official told Reuters.

The official said New York Fed President Timothy Geithner, U.S. Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Christopher Cox were among the participants in the meeting.

Financial markets have been on tenterhooks over the future of Lehman Brothers Holdings Inc LEH.N and whether the struggling investment bank, whose stock value has collapsed, may or may not be able to find a buyer. The talks at the New York Fed took place as discussions between Lehman and other parties continued.

The Treasury and Fed have been involved in talks regarding Lehman’s future. Earlier on Friday, a source familiar with the thinking of Treasury Secretary Henry Paulson said Paulson was “adamant” no public funds be put on the line to help facilitate a sale. (Reporting by Glenn Somerville; Writing by Tim Ahmann; Editing by Gary Hill)

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