Lehman Brothers
Table of Contents
1.0 History of Lehman Brothers 3 2.0 Causes of its Failure 5 3.0 Effects of Its Failure 8 4.0 Lessons Learned after the Collapse 9 5.0 Conclusions 11 6.0 References 12 7.0 Appendices 13
Abstract
In year 2008, financial crisis had led to the collapse of many banks in United States. Lehman Brothers was one of the banks that had filed its bankruptcy on 15 September 2008. It was the biggest bankruptcy in the history and it still is for now. Being the fourth largest investment bank in United States that had been established for 158 years, its failure had brought a big impact to the world financial markets. The failure of this large investment bank had triggered people around the world. After the failure of Lehman Brothers in 2008, there are a number of analysts and researchers that had tried to figure out the root of such event, the causes of the collapse, the effects of the failure and some lessons that could be learned from the failure of Lehman Brothers. All these papers and analysis have their own point of view. Therefore, there are a few objectives that I would like to focus on. In this paper, we will first focus on “What caused its failure?” Everything that happened will have its own reasons and causes. Next we are going to focus on “what is the effect of its failure?” Another objective that we are focusing on is the lessons that we gained from this failure. It is very important to study the story of Lehman Brothers who was a legend because it was established in 1850 until 2008 and they had survived through the world financial crisis.
1.0 History of Lehman Brothers
Lehman Brothers was first founded by a new German immigrant Henry Lehman in Montgomery, Alabama in year 1844. He started up a shop named ‘H. Lehman’, which sells groceries and dry goods to some local cotton farmers. In 1847, his brother Emanuel Lehman arrived, and they change the name again to ‘H. Lehman and Bro’. In 1850, their
1.0 History of Lehman Brothers 3 2.0 Causes of its Failure 5 3.0 Effects of Its Failure 8 4.0 Lessons Learned after the Collapse 9 5.0 Conclusions 11 6.0 References 12 7.0 Appendices 13
Abstract
In year 2008, financial crisis had led to the collapse of many banks in United States. Lehman Brothers was one of the banks that had filed its bankruptcy on 15 September 2008. It was the biggest bankruptcy in the history and it still is for now. Being the fourth largest investment bank in United States that had been established for 158 years, its failure had brought a big impact to the world financial markets. The failure of this large investment bank had triggered people around the world. After the failure of Lehman Brothers in 2008, there are a number of analysts and researchers that had tried to figure out the root of such event, the causes of the collapse, the effects of the failure and some lessons that could be learned from the failure of Lehman Brothers. All these papers and analysis have their own point of view. Therefore, there are a few objectives that I would like to focus on. In this paper, we will first focus on “What caused its failure?” Everything that happened will have its own reasons and causes. Next we are going to focus on “what is the effect of its failure?” Another objective that we are focusing on is the lessons that we gained from this failure. It is very important to study the story of Lehman Brothers who was a legend because it was established in 1850 until 2008 and they had survived through the world financial crisis.
1.0 History of Lehman Brothers
Lehman Brothers was first founded by a new German immigrant Henry Lehman in Montgomery, Alabama in year 1844. He started up a shop named ‘H. Lehman’, which sells groceries and dry goods to some local cotton farmers. In 1847, his brother Emanuel Lehman arrived, and they change the name again to ‘H. Lehman and Bro’. In 1850, their
References: Azadinamin, A. (2012). The Bankruptcy of Lehman Brothers: Causes of Failure & Recommendations Going Forward. Swiss Management Center. Boamah, K. (2011). The collapse of Lehman Brothers. Swiss Management Center (SMC) University. Connerty, A. (2009). The credit crunch: the collapse of Lehman Brothers – and a Hong Kong scheme to handle Lehman claims. Amicus Curiae. Isidore, C. (2008). Why the let Lehman die. CNNMoney.com. Retrieved February 2, 2013 from http://money.cnn.com/2008/09/15/news/companies/why_bear_not_lehman/index.htm Kirke, L. (2012). What caused the failure of Lehman Brothers? Could it have been prevented? How? Recommendations going forward. Swiss Management Center (SMC) University. Tebogo, B. (2012). The failure and collapse of the Lehman Brothers. Insititute of Development Management, Botswana. Wasik, J. (2012). What have we learned from Lehman’s monumental failure? Retrieved January 28, 2013 from http://www.forbes.com/sites/johnwasik/2012/08/29/what- have-we-learned-from- lehmans-failure/ 7.0 Appendices