Rise and Fall of Lehman Brothers
A
PROJECT
ON
RISE AND FALL OH ‘LEHAMN BROTHERS’
Submitted towards the partial fulfillment of
3rd Semester of MBA- LLM/MBL
Degree course, for
Financial Market and Regulatory Systems
Submitted to: Submitted By:
Mr. P.K. Jain Parinita Jhawar (261)
Mr. Sharad Kothari Romi Kansara (267)
Faculty in-charge Sanjana Khanna (268) M.B.A.-M.B.L. (III Sem)
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INTRODUCTION
In an increasingly interdependent financial world the recent Global Economic Crisis has had a cascading effect on the economies across nations. The crisis also impacted the Indian economy, though on the subdued scale and magnitude vis-à-vis the USA and other developed countries. This paper attempts to analyze the various issues and factors that led to the crisis in the US and its varied impacts on the Indian economy.
The economy of the world seems to be recovering from the worst-ever crisis since the Great Depression of 1929. The sub-prime mortgage ignited the crisis in the United States in August 2007 and trapped the entire world by September 2008 following the collapse of Lehman Brothers. It is also dubbed as the greatest crisis in the history of financial capitalism because of the way it simultaneously propagated to other countries.
The first section of the project will deal with the historical background of Lehman Brothers and the economic climate that prevailed in the years preceding the crisis followed by a detailed description of the genesis and development of the crisis. The next section gives an insight into the causes that led to the collapse of Lehman Brothers. The project will conclude by explaining the magnitude of the crisis and impact the fall of Lehman Brothers had all over the world.
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CHAPTER 1
-------------------------------------------------
HISTORY OF LEHMAN BROTHERS
The history of Lehman Brothers parallels the growth of the
PROJECT
ON
RISE AND FALL OH ‘LEHAMN BROTHERS’
Submitted towards the partial fulfillment of
3rd Semester of MBA- LLM/MBL
Degree course, for
Financial Market and Regulatory Systems
Submitted to: Submitted By:
Mr. P.K. Jain Parinita Jhawar (261)
Mr. Sharad Kothari Romi Kansara (267)
Faculty in-charge Sanjana Khanna (268) M.B.A.-M.B.L. (III Sem)
-------------------------------------------------
INTRODUCTION
In an increasingly interdependent financial world the recent Global Economic Crisis has had a cascading effect on the economies across nations. The crisis also impacted the Indian economy, though on the subdued scale and magnitude vis-à-vis the USA and other developed countries. This paper attempts to analyze the various issues and factors that led to the crisis in the US and its varied impacts on the Indian economy.
The economy of the world seems to be recovering from the worst-ever crisis since the Great Depression of 1929. The sub-prime mortgage ignited the crisis in the United States in August 2007 and trapped the entire world by September 2008 following the collapse of Lehman Brothers. It is also dubbed as the greatest crisis in the history of financial capitalism because of the way it simultaneously propagated to other countries.
The first section of the project will deal with the historical background of Lehman Brothers and the economic climate that prevailed in the years preceding the crisis followed by a detailed description of the genesis and development of the crisis. The next section gives an insight into the causes that led to the collapse of Lehman Brothers. The project will conclude by explaining the magnitude of the crisis and impact the fall of Lehman Brothers had all over the world.
-------------------------------------------------
CHAPTER 1
-------------------------------------------------
HISTORY OF LEHMAN BROTHERS
The history of Lehman Brothers parallels the growth of the
Bibliography: * Alan Greenspan, The Age of Turbulence: Adventures in a New World, New York: Penguin, 2007, p. 231 * The Economic Outlook, October 20, 2005Warren Buffet: Chairman’s letter to share-holders of Berkshire Hathaway Inc * Lehman Brother financial statement (2007) Page 114 * For Lehman, More Cuts and Anxiety http://www.nytimes.com/2008/08/29/business/29wall.html?em * Financials slip as Korea snags weigh on Lehman and Merrill, MarketWatch (September 14, 2008). * http://www.marketwatch.com/story/lehman-folds-with-record-613-billion-debt?siteid=rss * Cochrane, John and Luigi Zingales. 2009. “Lehman and the Financial Crisis”, Wall Street Journal September 15. New York, 30 October, 2008 [ 4 ] [ 5 ]. Robert J. Shiller, The Subprime Solution, Princeton: Princeton University Press, 2008, p. 48 [ 6 ] Considerations”, BIS working paper 251, 2008 [ 7 ] [ 8 ]. The Economic Outlook, October 20, 2005 [ 9 ] [ 13 ]. C. Rangarajan, ‘‘The financial crisis and its ramifications’’, The Hindu, November 8, 2008 [ 14 ]