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Lehman Brothers

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The Lehman Brothers Bankruptcy

Abstract
Lehman Brothers filed for bankruptcy and very nearly caused a collapse of the world’s financial system on September 15 2008. This report looks at the reason behind Lehman bankruptcy and how this create financial panic during the fall in the year 2008.

Introduction
The Lehman brothers had played an important part in the growth of American industry and technology as well as the establishment of the modern corporation for more than 150 years

Executive Summary
The largest bankruptcy of Lehman brothers ever filled which losses to investors and billions of dollars. Lehman Brothers profoundly invested in pension plans such as the New York State Teacher Retirement Plan and the California Public retirement System, traded at a high over $ 65 per share. Lehman Brothers Bankruptcy, after a year they have had their biggest profit. U.S investment Bank Lehman Brothers filed for chapter 11 Bankruptcy in 15th September 2008.Lehman’s Brothers bankruptcy was considered the largest in history with $639 billion in assets and $ 619 billion in debt. At the time of its collapse, Lehman was the fourth largest U.S investment bank with worldwide employees.

One of the root causes of the Lehman’s collapse is U.S subprime mortgages and real state market.

History of the Lehman Brothers

Henry, Emanuel and Mayer Lehman Migrated from Germany to Montgomery, Alabama in the mid-1800s.They started their business from a small grocery shop to the local cotton farmers. Later, they moved to New York and started New York Cotton Exchange and continued on the road of the success. Lehman Brothers survived and remain the fourth largest American investment bank even in the great depression and the world war.

Stakeholders affected by Fraud Mismanagement

Nature of the various illegal /unethical practice

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