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Lehman Brothers headquarters in New York City, one year prior to bankruptcy. The bankruptcy of Lehman Brothers, also known as the Crash of '08 and the Lehman Shock, on September 15, 2008, was the climax of the subprime mortgage crisis.
According to bankruptcy examiner Anton Valukas, the seeds of Lehman's Sept. 15, 2008, bankruptcy were sown in 2006, aggressively fertilized throughout 2007 and 2008's first two quarters, and ...
Lehman Brothers Inc. (/ ˈ l iː m ən / LEE-mən) was an American global financial services firm founded in 1850. [2] Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), with about 25,000 employees worldwide.
A continuous buildup of toxic assets in the form of subprime mortgages purchased by Lehman Brothers ultimately led to the firm's bankruptcy in September 2008. The collapse of Lehman Brothers is often cited as both the culmination of the subprime mortgage crisis, and the catalyst for the Great Recession in the United States.
The banking industry has been through a lot in the last four years. The collapse of Lehman Brothers helped bring the entire industry to its knees, and without the government swooping in with a ...
Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke told lawmakers on Tuesday that the bankrupcty of Lehman Brothers serves as perhaps the best example of the need for ...
Near the end Lehman had $700 billion in assets but only $25 billion (about 3.5%) in equity. Furthermore, most of the assets were long-lived or matured in over a year but liabilities were due in less than a year. Lehman had to borrow and repay billions of dollars through the "repo" market every day in order to remain in business.
The bank was reeling from subprime mortgage losses that had driven its stock down from $35 to under $4 in less than a year. Lehman Brothers had just collapsed, and investors holding shares in ...