Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Lehman Brothers
Contribution to Housing Crisis
February 2007
- stock was at $86.18
- market capitalization closed at $60 billion
March 14, 2007
- Lehman Bro. firm reported record revenues and profit for first quarter
August 2007
- credit crises erupted
- Lehman stock fell
- eliminated 2,500 mortgage-related jobs and shut down BNC unit
- closed offices at Lehman's Alt-A Aurora in three states
2007
- Lehman underwrote more mortgage-backed securities than any other firm
- a $85 billion portfolio
- fourth quarter- stock rebounded
- global equity markets reached new highs and prices for fixed-income assets for a temporary rebound
More
Contributions
OG's
Lil' History
Emanuel and Mayer Lehman
(the two younger brothers)
March 17, 2008
- shares fell 48%
April 2008
- Lehman raised $4 billion through preferred stock
- convertible into Lehman shares at 32% premium
- stock resumed it's decline
June 9, 2008
- second quarter loss of $2.8 billion
- 1st loss since spun off by American Express
- reported that it had raised $6 billion from investors
- boosted liquidity pool to around $45 billion
- decreased gross assets to $147 billion
- reduced exposure to residential and commercial mortgages by 20%
- cut leverage from factor of 32 to around 25
founded in 1850
largest bankruptcy filing in the US in 2008
originally a cotton trading company in Alabama run by Henry, Emanuel, and Mayer Lehman from Bavaria, Germany
family only partnership until the 1920s when John M. Hancock joined the firm
Consequences
after stocks fell 77%, the company filed for bankruptcy on Sep 15, 2008
Barclays acquired the core business of Lehman Brothers
Nomura Holdings (Japan) bought the Asian division ($225 million) and parts of the European division ($2 for only the employees)
biBillions Billions of dollars
http://www.library.hbs.edu/hc/lehman/history.html
http://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp
http://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp
Consequences
former CEO Richard Fuld could face time in prison
the bank's accountancy firm Ernst & Young could face financial malpractice