What Is (or Was) Lehman Bros.

What is (or was) Lehman Brothers? Americas fourth-largest enthronization bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy orison cognize to mankind. The 158-year-old firm was founded by brothers atomic number 1, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in newborn York after having made money in railway bonds. So what went wrong? Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, alike railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of long Capital Management in the 1990s. Thus the collapse of the monstrosity investment bank came as a major traumatise for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan. The $613 billion (some estimates personate the size at $639 billion) bankruptcy thus throws up the irresolution: why did the Wall Street giant go let on? Heres why. . . Why did Lehman Brothers go bankrupt? The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy.

Lehman was strangled by a massive credit crisis and fast plummeting real estate of the realm prices. The gargantuan $60 billion loss in vainglorious real estate loans forced the bank to file for bankruptcy. However, the decline of the 158-year-year institution that started cotton trade in US onward the American Civil War and financed the railroad that built a nation, got hit by a large dose of unsuitable luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld. provided there were more reason. Check out what they were. . . Lehmans collapse was besides triggered by the refusal of other banks to do business with it because of its complex and, at times, opaque ways of trading. Housing loans made by... If you want to appropriate a full essay, order it on our website: Orderessay

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