Lehman Brothers 2008

LEHMAN BROTHERS
2008
 Fourth-largest investment bank in the United States
 Failed to manage financial risks , contributing to the global financial crisis
Guided by:- Sudam Ahirrow

SOME DETAILS ABOUT LEHMAN BROTHERS
CO.
• Company type:- Public company
• Founders :- Henry , Emanuel, Mayer Lehman
• Lehman Brothers Inc. was an American global financial services firm
founded in 1850 Before filing for bankruptcy in 2008.
• with about 25,000 employees worldwide. It was doing business in
investment banking, equity, fixed-income and derivatives sales
and trading (especially U.S. Treasury securities), research, investment
management, private equity, and private banking.
• Lehman was operational for 158 years from its founding in 1850 until the
bankruptcy 2008.
HISTORY
• 1. Early Origins 1850:

• Founded in Montgomery, Alabama, by Henry, Emanuel, and Mayer Lehman as
a dry goods store. The firm shifted to trading cotton and later became Lehman
Brothers in 1887, focusing on investment banking.
• 2. Expansion and Growth 1920s-1930s:

• Lehman Brothers expanded its operations, weathered the Great Depression,
and became a prominent player in investment banking.1960s: The firm grew
through mergers and acquisitions, becoming a significant force in the financial
industry.
• 3. Modernization1980s-1990s:
• Lehman Brothers diversified into new areas such as real estate and leveraged
buyouts. It also expanded its global reach.
4. Pre-Collapse Challenges 2000s:
Lehman Brothers increasingly invested in high-risk assets, including subprime
mortgage and mortgage-backed securities. Initially profitable, these investments
became problematic as the housing market declined.
5. The Crisis and Collapse 2007-2008:

As the subprime mortgage crisis worsened, Lehman Brothers faced severe financial
difficulties. Despite efforts to secure additional funding or find a buyer, the firm could
not stabilize.
September 15, 2008:

Lehman Brothers filed for bankruptcy, marking one of the largest bankruptcy filings in
U.S. history and a significant event in the global financial crisis
Lehman Brothers’ history before its collapse reflects a trajectory of growth and
innovation, followed by critical missteps and exposure to risky financial practices that
ultimately led to its downfall.
The collapse of Lehman Brothers in 2008 was a complex event with multiple interrelated
issues that contributed to its downfall and had significant repercussions for the global
financial system.
Here’s an explanation of the core problems:
Excessive risk taking
• Subprime mortgage exposure

• Leverage
Risk management failure
• Inadequate risk assessment

• Complex financial products
Inability of secure supports
• Failed recuse attempts

• Government decision
Systematic impact
• Market panic and contagion
Market condition and loss of confidence
• Housing market decline

• Credit crunch
KEY OUTCOME
The collapse of Lehman Brothers in September 2008 had profound and far-
reaching outcomes, both for the financial world and the broader economy.
Here’s a summary of the key outcomes:-
 Immediate Financial Impact:
 Broader Economic Consequences:
 Government and Regulatory Responses:
 Legal and Financial Fallout:
 Market and Industry Changes:
 Long-Term Implications:
CONCLUSION
The collapse of Lehman Brothers in 2008 was a pivotal moment in the

global financial crisis, revealing deep vulnerabilities within the financial
system. The firm’s excessive risk-taking, marked by heavy investments in
subprime mortgages and highly leveraged financial strategies, coupled
with inadequate risk management, led to its downfall. Lehman's
bankruptcy, the largest in U.S. history, triggered widespread panic in global
markets, causing a severe credit crunch and exacerbating the economic
downturn. The crisis underscored the need for stronger financial
regulations and risk management practices, prompting significant reforms
and interventions aimed at stabilizing the financial system and preventing
future systemic failures.
BIBLIOGRAPHY
 https://www.google.com/search?
q=how+to+make+a+case+study+presentation&oq=how+to+make+a+case+stuy&gs_lcrp=EgZjaHJ
vbWUqCQgDEAAYDRiABDIGCAAQRRg5MgkIARAAGA0YgAQyCQgCEAAYDRiABDIJCAMQABgNGIAEMgkIBB
AAGA0YgAQyCQgFEAAYDRiABDIJCAYQABgNGIAEMgkIBxAAGA0YgAQyCQgIEAAYDRiABDIJCAkQABgNGIA
E0gEJMTA0NzBqMGo3qAIIsAIB&sourceid=chrome&ie=UTF-8
 https://
venngage.com/templates/presentations/white-and-blue-minimalist-professional-strategy-research-pres
entation-77cccdef-582f-468f-85c5-80e5942385a6
 https://en.wikipedia.org/wiki/Lehman_Brothers#Collapse
 https://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp
 https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/lehman-brothers /
 https://www.library.hbs.edu/hc/lehman/exhibition/lehman-brothers-introduction
THANK YOU !!!

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LEHMAN BROTHERS

Guided by:- Sudam Ahirrow

• 1. Early Origins 1850:

• 2. Expansion and Growth 1920s-1930s:

5. The Crisis and Collapse 2007-2008:

September 15, 2008:

Excessive risk taking

• Subprime mortgage exposure

Risk management failure

• Inadequate risk assessment

• Failed recuse attempts

• Market panic and contagion

Market condition and loss of confidence

• Housing market decline

Here’s a summary of the key outcomes:-

 Immediate Financial Impact:

 Broader Economic Consequences:

 Government and Regulatory Responses:

 Legal and Financial Fallout:

 Market and Industry Changes:

The collapse of Lehman Brothers in 2008 was a pivotal moment in the

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