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Hades
Junior Chimp
Posts: 6,375
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« on: September 10, 2018, 08:44:20 PM » |
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10 years ago, a shockwave went through the markets. The U.S. government let the investment bank Lehmann Brothers Holdings Inc. go broke. A fatal chain reaction ensued, the world plunged into recession. Its impact is still noticeable down to the present day. The economical fallout could only be stemmed by measures such as multi-billion-dollar aids, reduction of base rates of the note-issuing bank and governmental assurance given to depositors. Out of the big five U.S. investment banks, only two Goldman Sachs and Morgan Stanley survived as independent enterprises. On Monday, September 15, 2008, Richard Severin Fuld Jr., the final Chairman and Chief Executive Officer of Lehman Brothers, declared bankruptcy, leaving a pile of debts in the amount of $600 billion, 25.000 redundant employees, and a crash of the Dow Jones by 500 points, the sharpest fall in prices since the 9/11 terror attacks. A March 2010 report by the court-appointed examiner indicated that Lehman executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finances appear less shaky than they really were.
Did Secretary of the Treasury Henry Paulson do the right thing by opposing commitments to public funds towards a bailout and therefore thwarting a purchase by Barclays?
Do you think Richard Fuld will ever understand why the government let Lehman Brothers collapse?
What did we learn from the bankruptcy of Lehman Brothers, especially concerning subprime mortgages and accounting frauds?
Do you think there is currently a huge, hidden stock market bubble that is at the point of bursting? If so, will its impacts be even more devastating than the 2008 stock market crash?
Richard Severin Fuld Jr., the final Chairman and Chief Executive Officer of Lehman Brothers
Secretary of the Treasury Henry Paulson
Lehman Brothers Bank in New York
Formers Lehman Brothers employees leaving their offices with boxes in their hands
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