Lehman's Got a Reluctant Safety Net in Uncle Sam

It has been another tumultuous day in trading for Lehman Brothers(LEH Quote), as the firm continued to weave in and out of the rumor-mill blades.

Though several factors will play a part in whether Lehman can keep its head above water, a key question is whether federal regulators will be willing to extend the same assistance they provided for Bear Stearns, Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote) since the start of the year.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke have made tough statements in recent weeks indicating that the government will not bail out any and every financial institution in need of help. And while regulators are trying to avoid the "moral hazard" of removing risk from the market, they're likely to do everything in their power to avoid a major bank failure that would force the financial markets into chaos. ...