The Last Days Of Lehman Brothers Analysis
The Fall Of Lehman Brothers (60 Min Documentary) And The Last Days Of Lehman Bros. (tele film)
Presented by:
Maheen Amer Malik
ACF A
Ben Daniels as John Thain
CEO of Merrill Lynch before its merger with Bank of America
James Cromwell as Henry Paulson
American banker , 74th Secretary of the Treasury
Corey Johnson as Richard Fuld
CEO
Michael Landes as Zach (employee) & James Bolam as Ken Lewis (CEO, president, chairman of
BOA.
Focused on Last 3 Days of the bankruptcy..
America’s 4th largest investment bank (25,000 employees worldwide)
The bank that Bust the World and involvement of Fuld in that
On September 15, 2008, the firm filed for bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies.
The filing marked the …show more content…
3 L’S THAT KILLED LEHMAN (acc. To case):
Leverage (T.A/Sh.Eq)=31 when asset prices began heading south.
Liquidity (although had massive asset base, lacked ready cash & other easily sold assets, banks refused to tread with it)
Losses (of $6.5 billion, property prices crashed and repossessions and arrears sky-rocketed-9/11)
In Summary: a company with a 158-year history, with14 years as NYSE-listed giant-failed simply because it took on too much risk in a booming market. In the end, its move from the safety of corporate finance & income into the risky world of proprietary trading proved to be its downfall. The lesson here is that any firm, no matter how big and powerful, can be dashed to pieces on the rocks of leverage, liquidity and losses!
Ernest & Young accused in Lehman Bros. Fraud
Audited 2001-until their bankruptcy (2008), E&Y reportedly earned more than $150 million in fees from Lehman Brothers. The suit is asking for those fees to be returned, + damages.
Simple Theory: Lehman Brothers committed a massive accounting fraud, & E&Y went along with it when they signed clean audit
Presented by:
Maheen Amer Malik
ACF A
Ben Daniels as John Thain
CEO of Merrill Lynch before its merger with Bank of America
James Cromwell as Henry Paulson
American banker , 74th Secretary of the Treasury
Corey Johnson as Richard Fuld
CEO
Michael Landes as Zach (employee) & James Bolam as Ken Lewis (CEO, president, chairman of
BOA.
Focused on Last 3 Days of the bankruptcy..
America’s 4th largest investment bank (25,000 employees worldwide)
The bank that Bust the World and involvement of Fuld in that
On September 15, 2008, the firm filed for bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies.
The filing marked the …show more content…
3 L’S THAT KILLED LEHMAN (acc. To case):
Leverage (T.A/Sh.Eq)=31 when asset prices began heading south.
Liquidity (although had massive asset base, lacked ready cash & other easily sold assets, banks refused to tread with it)
Losses (of $6.5 billion, property prices crashed and repossessions and arrears sky-rocketed-9/11)
In Summary: a company with a 158-year history, with14 years as NYSE-listed giant-failed simply because it took on too much risk in a booming market. In the end, its move from the safety of corporate finance & income into the risky world of proprietary trading proved to be its downfall. The lesson here is that any firm, no matter how big and powerful, can be dashed to pieces on the rocks of leverage, liquidity and losses!
Ernest & Young accused in Lehman Bros. Fraud
Audited 2001-until their bankruptcy (2008), E&Y reportedly earned more than $150 million in fees from Lehman Brothers. The suit is asking for those fees to be returned, + damages.
Simple Theory: Lehman Brothers committed a massive accounting fraud, & E&Y went along with it when they signed clean audit