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Lehman Brothers

September 04, 2023

Lehman Brothers Inc. (/ˈliːmən/ LEE-mən) was an American global financial services firm founded in 1847.[2] Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), with about 25,000 employees worldwide.[3][4] It was doing business in investment banking, equity, fixed-income and derivatives sales and trading (especially U.S. Treasury securities), research, investment management, private equity, and private banking. Lehman was operational for 158 years from its founding in 1850 until 2008.[5]

Lehman Brothers Holdings Inc.
Lehman Brothers headquarters in Times Square, a year before the company's collapse
Lehman Brothers
TypePublic company
NYSE: LEH
IndustryInvestment services
PredecessorH. Lehman and Bro.
Founded1850
Montgomery, Alabama, U.S.[1]
FoundersHenry, Emanuel and Mayer Lehman
DefunctSeptember 15, 2008; 14 years ago (2008-09-15)
FateChapter 11 bankruptcy Liquidation
Successors
Headquarters
New York City, New York
,
United States
Area served
Worldwide
Key people
Products
Number of employees
26,200 (2008)
SubsidiariesLehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, LLC, SIB Mortgage Corporation, Lehman Brothers Bank, FSB, Eagle Energy Partners, and the Crossroads Group
Websitewww.lehman.com

On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following the exodus of most of its clients, drastic declines in its stock price, and the devaluation of assets by credit rating agencies. The collapse was largely due to Lehman's involvement in the subprime mortgage crisis and its exposure to less liquid assets.[6][7][8] Lehman's bankruptcy filing was the largest in US history,[9] and is thought to have played a major role in the unfolding of the financial crisis of 2007–2008. The market collapse also gave support to the "too big to fail" doctrine.[10]

After Lehman Brothers filed for bankruptcy, global markets immediately plummeted. The following day, major British bank Barclays announced its agreement to purchase, subject to regulatory approval, a significant and controlling interest in Lehman's North American investment-banking and trading divisions, along with its New York headquarters building.[11][12] On September 20, 2008, a revised version of that agreement was approved by U.S. Bankruptcy Court Judge James M. Peck.[13] The next week, Nomura Holdings announced that it would acquire Lehman Brothers' franchise in the Asia-Pacific region, including Japan, Hong Kong and Australia,[14] as well as Lehman Brothers' investment banking and equities businesses in Europe and the Middle East. The deal became effective on October 13, 2008.[15]

History Edit

Under the Lehman family (1850–1969) Edit

See also: Lehman family
 
Emanuel and Mayer Lehman

In 1844, 23-year-old Henry Lehman,[16] the son of a Jewish cattle merchant, emigrated to the United States from Rimpar, Bavaria.[17] He settled in Montgomery, Alabama,[16] where he opened a dry-goods store, "H. Lehman".[18] In 1847, following the arrival of his brother Emanuel Lehman, the firm became "H. Lehman and Bro."[2] With the arrival of their youngest brother, Mayer Lehman, in 1850, the firm changed its name again and "Lehman Brothers" was founded.[18][19]

During the 1850s, cotton was one of the most important crops in the United States, and was Alabama's highest-grossing cash crop. Until the U.S. Civil War, nearly all U.S. cotton was produced by slave labor, and by the 1860 census, slaves constituted nearly 45% of Alabama's total population.[20] Mayer Lehman was listed as the owner of seven slaves ("three males and four females ranging in age from 5 to 50") in the U.S. Census of 1860.[21]

Capitalizing on cotton's high market value, the three brothers began to routinely accept raw cotton from slave plantations as payment for merchandise, eventually beginning a second business trading in cotton. Within a few years this business grew to become the most significant part of their operation. Following Henry's death from yellow fever in 1855,[18][22] the remaining brothers continued to focus on their commodities-trading/brokerage operations.

By 1858, the center of cotton trading had shifted from the South to New York City, where factors and commission houses were based. Lehman opened its first branch office at 119 Liberty Street,[22][23] and 32-year-old Emanuel relocated there to run the office.[18] In 1862, facing difficulties as a result of the Civil War, the firm teamed up with a cotton merchant named John Durr to form Lehman, Durr & Co.[24][25] Following the war the company helped finance Alabama's reconstruction. The firm's headquarters were eventually moved to New York City, where it helped found the New York Cotton Exchange in 1870, commodifying the crop;[22][26] Emanuel sat on the board of governors until 1884. The firm also dealt in the emerging market for railroad bonds and entered the financial-advisory business.[27]

Lehman became a member of the Coffee Exchange as early as 1883 and finally the New York Stock Exchange in 1887.[22][26] In 1899, it underwrote its first public offering, the preferred and common stock of the International Steam Pump Company.[28]

Despite the offering of International Steam, the firm's real shift from being a commodities house to a house of issue did not begin until 1906.[23][29] In that year, under Emanuel's son Philip Lehman, the firm partnered with Goldman, Sachs & Co.,[29][30][31] to bring the General Cigar Co. to market,[32] followed closely by Sears, Roebuck and Company.[32] Among these were F.W. Woolworth Company,[32][33] May Department Stores Company, Gimbel Brothers, Inc.,[34] R.H. Macy & Company,[34] The Studebaker Corporation,[33] the B.F. Goodrich Co.,[27] and Endicott Johnson Corporation.

Following Philip Lehman's retirement in 1925, his son Robert "Bobbie" Lehman took over as head of the firm.[23][35][36] During Bobbie's tenure, the company weathered the capital crisis of the Great Depression by focusing on venture capital while the equities market recovered.[37]

In 1924, John M. Hancock became the first non-family member to join the firm,[30][38] followed by Monroe C. Gutman and Paul Mazur, who became partners in 1927.[39][40] By 1928, the firm had moved to its One William Street location.[41]

 
Pete Peterson

In the 1930s, Lehman underwrote the initial public offering of the first television manufacturer, DuMont Laboratories, and helped fund the Radio Corporation of America (RCA).[42] It also helped finance the rapidly growing oil industry, including the companies Halliburton and Kerr-McGee. In the 1950s, Lehman underwrote the IPO of Digital Equipment Corporation.[43] Later, it arranged the acquisition of Digital by Compaq.

An evolving partnership (1969–1984) Edit

Robert Lehman died in 1969 after 44 years in a leadership position for the firm, leaving no member of the Lehman family actively involved with the partnership.[23] At the same time, Lehman was facing strong headwinds amidst the difficult economic environment of the early 1970s. By 1972, the firm was facing hard times and in 1973, Pete Peterson, chairman and chief executive officer of the Bell & Howell Corporation, was brought in to save the firm.[44][45]

Under Peterson's leadership as chairman and CEO, the firm acquired Abraham & Co. in 1975, and two years later merged with Kuhn, Loeb & Co.,[45] to form Lehman Brothers, Kuhn, Loeb Inc., the country's fourth-largest investment bank, behind Salomon Brothers, Goldman Sachs and First Boston.[46] Peterson led the firm from significant operating losses to five consecutive years of record profits with a return on equity among the highest in the investment-banking industry.[44][47]

By the early 1980s, hostilities between the firm's investment bankers and traders prompted Peterson to promote Lewis Glucksman, the firm's President, COO and former trader, to be his co-CEO in May 1983.[29] Glucksman introduced a number of changes that had the effect of increasing tensions, which when coupled with Glucksman’s management style and a downturn in the markets, resulted in a power struggle that ousted Peterson and left Glucksman as the sole CEO.[44][48]

Upset bankers, who had soured over the power struggle, left the company. Stephen A. Schwarzman, chairman of the firm's M&A committee, recalled in a February 2003 interview with Private Equity International that "Lehman Brothers had an extremely competitive internal environment, which ultimately became dysfunctional." The company suffered under the disintegration, and Glucksman was pressured into selling the firm.[44][49]

Merger with American Express (1984–1994) Edit

 
Shearson Lehman/American Express Logo
Main article: Shearson Lehman Hutton

Shearson/American Express, an American Express-owned securities company focused on brokerage rather than investment banking, acquired Lehman in 1984, for $360 million.[50] On May 11, the combined firms became Shearson Lehman/American Express.[48]

From 1983 to 1990, Peter A. Cohen was CEO and chairman of Shearson Lehman Brothers,[51] where he led the $1 billion purchase of E.F. Hutton to form Shearson Lehman Hutton.[52][53] In 1989, Shearson backed F. Ross Johnson's management team in its attempted management buyout of RJR Nabisco, but were ultimately outbid by private equity firm Kohlberg Kravis Roberts, who was backed by Drexel Burnham Lambert.[54]

Divestment and independence (1994–2008) Edit

In 1993, under newly appointed CEO Harvey Golub, American Express began to divest itself of its banking and brokerage operations. It sold its retail brokerage and asset management operations to Primerica[55] and in 1994 it spun off Lehman Brothers Kuhn Loeb in an initial public offering, as Lehman Brothers Holdings, Inc.[56] After being spun off, Dick Fuld became CEO of the company.[57] Fuld steered Lehman through the 1997 Asian Financial Crisis,[58] and when the Long Term Capital Management hedge fund collapsed in 1998.[59][60]

In 2001, the firm acquired the private-client services, or "PCS", business of Cowen & Co.[61] and later, in 2003, aggressively re-entered the asset-management business, which it had exited in 1989.[62] Beginning with $2 billion in assets under management, the firm acquired the Crossroads Group, the fixed-income division of Lincoln Capital Management[62] and Neuberger Berman.[63] These businesses, together with the PCS business and Lehman's private-equity business, comprised the Investment Management Division,[64] which generated approximately $3.1 billion in net revenue.[65]

During the subprime mortgage crisis, Fuld kept his job while CEOs of rivals like Bear Stearns, Merrill Lynch, and Citigroup were forced to resign.[60] In addition, Lehman's board of directors, which included retired CEOs like Vodafone's Christopher Gent and IBM's John Akers were reluctant to challenge Fuld as the firm's share price spiraled lower.

In May 2008, prior to going bankrupt, the firm had $639 billion in assets.[66]

Response to September 11, 2001 attacks Edit

 
The former New York City headquarters now owned by Barclays.

On September 11, 2001, Lehman occupied three floors (38-40) of 1 World Trade Center, where one of its employees was killed in the terrorist attacks of that day.[67][68] Its global headquarters in Three World Financial Center were severely damaged and rendered unusable by falling debris, displacing over 6,500 employees.[67] Trading operations moved to Jersey City, New Jersey.[69] When stock markets reopened on September 17, 2001, Lehman's sales and trading capabilities were restored.[70]

In the ensuing months, the firm spread its operations across New York City in over 40 temporary locations.[71] The investment-banking division converted the first-floor lounges, restaurants, and all 665 guest rooms of the Sheraton Manhattan Hotel into office space.[71]

The bank also experimented with flextime (to share office space) and remote work via virtual private networking after the attacks.[72][73] In October 2001, Lehman purchased a 32-story, 1,050,000-square-foot (98,000 m2) office building for a reported sum of $700 million.[74][75] The building, located at 745 Seventh Avenue, had recently been completed, and not yet occupied, by rival Morgan Stanley.[74][75] Lehman began moving into the new facility in January and finished in March 2002.[76] The firm did not return to Three World Financial Center as its structural integrity had not been given a clean bill of health, and the company could not have waited for repairs to Three World Financial Center to conclude.[77][78]

After the attacks, Lehman's management placed increased emphasis on business continuity planning.[79] Aside from its headquarters in Three World Financial Center, Lehman maintained operations-and-backoffice facilities in Jersey City, space that the firm considered leaving prior to 9/11.[73] The space was not only retained, but expanded, including the construction of a backup-trading facility.[73]

June 2003 SEC litigation Edit

In June 2003, the company was one of ten firms which simultaneously entered into a settlement with the U.S. Securities and Exchange Commission (SEC), the Office of the New York State Attorney General and various other securities regulators, regarding undue influence over each firm's research analysts by its investment-banking divisions.[80][81] Regulators alleged that the firms had improperly associated analyst compensation with the firms' investment-banking revenues, and promised favorable, market-moving research coverage, in exchange for underwriting opportunities.[82] The settlement, known as the "global settlement", provided for total financial penalties of $1.4 billion, including $80 million against Lehman, and structural reforms including a complete separation of investment banking departments from research departments, no analyst compensation, directly or indirectly, from investment-banking revenues, and the provision of free, independent, third-party, research to the firms' clients.[80][81]

Rise of mortgage origination (1997–2006) Edit

Lehman was one of the first Wall Street firms to move into the business of mortgage origination. In 1997, Lehman bought Colorado-based lender, Aurora Loan Services, an Alt-A lender. In 2000, to expand their mortgage origination pipeline, Lehman purchased West Coast subprime mortgage lender BNC Mortgage LLC. Lehman quickly became a force in the subprime market. By 2003 Lehman made $18.2 billion in loans and ranked third in lending. By 2004, this number topped $40 billion. By 2006, Aurora and BNC were lending almost $50 billion per month.[83] By 2008, Lehman had assets of $680 billion supported by only $22.5 billion of firm capital. From an equity position, its risky commercial real estate holdings were thirty times greater than capital. In such a highly leveraged structure, a 3 to 5 percent decline in real estate values would wipe out all capital.[84]

Collapse Edit

Main article: Bankruptcy of Lehman Brothers

Causes Edit

Malfeasance Edit

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. This practice was a type of repurchase agreement that temporarily removed securities from the company's balance sheet. However, unlike typical repurchase agreements, these deals were described by Lehman as the outright sale of securities and created "a materially misleading picture of the firm’s financial condition in late 2007 and 2008."[85]as well as the Credit default swaps where boardroom went to AIG insured those mortgages and then collected after they defaulted knowing they were no good to begin with, which led to the downfall of AIG starting in fall of 2007.

Subprime mortgage crisis Edit

In August 2007, the firm closed its subprime lender, BNC Mortgage, eliminating 1,200 positions in 23 locations, and took an after-tax charge of $25 million and a $27 million reduction in goodwill. Lehman said that poor market conditions in the mortgage space "necessitated a substantial reduction in its resources and capacity in the subprime space."[86]

In September 2007, Joe Gregory appointed Erin Callan as CFO. On March 16, 2008, after rival Bear Stearns was taken over by JPMorgan Chase in a fire sale, market analysts suggested that Lehman would be the next major investment bank to fall. Callan fielded Lehman's first quarter conference call, where the firm posted a profit of $489 million, compared to Citigroup's $5.1 billion and Merrill Lynch's $1.97 billion losses which was Lehman’s 55th consecutive profitable quarter. The firm's stock price leapt 46 percent after that announcement.[76][87][88][89]

In 2008, Lehman faced an unprecedented loss to the continuing subprime mortgage crisis. Lehman's loss was a result of having held on to large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages; it is unclear whether Lehman was simply unable to sell the lower-rated bonds or voluntarily kept them. In any event, huge losses accrued in lower-rated mortgage-backed securities throughout 2008. In the second fiscal quarter, Lehman reported losses of $2.8 billion and was forced to sell off $6 billion in assets.[90] In the first half of 2008 alone, Lehman stock lost 73% of its value as the credit market continued to tighten.[90]

On June 9, 2008, Lehman Brothers announced US$2.8 billion second-quarter loss, its first since being spun off from American Express, as market volatility rendered many of its hedges ineffective during that time. Lehman also reported that it had raised a further $6 billion in capital. As a result, there was major management shakeup, in which Hugh "Skip" McGee III (head of investment banking) held a meeting with senior staff to strip CEO Richard Fuld and his lieutenants of their authority. Consequently, Joe Gregory agreed to resign as president and COO, and afterward he told Erin Callan that she had to resign as CFO. Callan was appointed CFO of Lehman in 2008 but served only for six months, before departing after her mentor Joe Gregory was demoted.[87][88][89] Bart McDade was named to succeed Gregory as president and COO, when several senior executives threatened to leave if he was not promoted. McDade took charge and brought back Michael Gelband and Alex Kirk, who had previously been pushed out of the firm by Gregory for not taking risks. Although Fuld remained CEO, he soon became isolated from McDade's team.[76][91]

In August 2008, Lehman reported that it intended to release 6% of its work force, 1,500 people, just ahead of its third-quarter-reporting deadline in September.[90] On August 22, 2008, shares in Lehman closed up 5% (16% for the week) on reports that the state-controlled Korea Development Bank was considering buying the bank.[92] Most of those gains were quickly eroded as news came in that Korea Development Bank was "facing difficulties pleasing regulators and attracting partners for the deal."[93]

On September 9, Lehman's shares plunged 45% to $7.79, after it was reported that the state-run South Korean firm had put talks on hold.[94] Investor confidence continued to erode as Lehman's stock lost roughly half its value and pushed the S&P 500 down 3.4% on September 9. The Dow Jones lost 300 points the same day on investors' concerns about the security of the bank.[95] The U.S. government did not announce any plans to assist with any possible financial crisis that emerged at Lehman.[96]

The next day, Lehman announced a loss of $3.9 billion and its intent to sell off a majority stake in its investment-management business, which included Neuberger Berman.[97][98] The stock slid seven percent that day.[98][99] Lehman, after earlier rejecting questions on the sale of the company, was reportedly searching for a buyer as its stock price dropped another 40 percent on September 11, 2008.[99]

Just before the collapse of Lehman Brothers, executives at Neuberger Berman sent e-mail memos suggesting, among other things, that the Lehman Brothers' top people forgo multimillion-dollar bonuses to "send a strong message to both employees and investors that management is not shirking accountability for recent performance."[100] Lehman Brothers Investment Management Director George Herbert Walker IV dismissed the proposal, going so far as to actually apologize to other members of the Lehman Brothers executive committee for the idea having been suggested. He wrote, "Sorry team. I am not sure what's in the water at Neuberger Berman. I'm embarrassed and I apologize."[100]

Short-selling allegations Edit

During hearings on the bankruptcy filing by Lehman Brothers and bailout of AIG before the House Committee on Oversight and Government Reform,[101] former Lehman Brothers CEO Richard Fuld said a host of factors including a crisis of confidence and naked short-selling attacks followed by false rumors contributed to both the collapse of Bear Stearns and Lehman Brothers. House committee Chairman Henry Waxman said the committee received thousands of pages of internal documents from Lehman and these documents portray a company in which there was "no accountability for failure".[102][103][104]

An article by journalist Matt Taibbi in Rolling Stone contended that naked short selling contributed to the demise of both Lehman and Bear Stearns.[105] A study by finance researchers at the University of Oklahoma Price College of Business studied trading in financial stocks, including Lehman Brothers and Bear Stearns, and found "no evidence that stock price declines were caused by naked short selling".[106]

Bankruptcy Edit

On Saturday, September 13, 2008, Timothy F. Geithner, then the president of the Federal Reserve Bank of New York, called a meeting on the future of Lehman, which included the possibility of an emergency liquidation of its assets.[107] Lehman reported that it had been in talks with Bank of America and Barclays for the company's possible sale; however, both Barclays and Bank of America ultimately declined to purchase the entire company, in the former case because the British government (in particular, the Chancellor of the Exchequer Alastair Darling and the CEO of the Financial Services Authority Hector Sants) refused to allow the transaction at the last minute, quoting stockholder regulations in the UK, despite a deal having apparently been completed.[107][108]

The next day, Sunday, September 14, the International Swaps and Derivatives Association (ISDA) offered an exceptional trading session to allow market participants to offset positions in various derivatives on the condition of a Lehman bankruptcy later that day.[109] Although the bankruptcy filing missed the deadline, many dealers honored the trades they made in the special session.[110]

 
Lehman Brothers headquarters in New York City on September 15, 2008

Shortly before 1 am Monday morning (UTC−5), Lehman Brothers Holdings announced it would file for Chapter 11 bankruptcy protection[111] citing bank debt of $613 billion, $155 billion in bond debt, and assets worth $639 billion.[112] It further announced that its subsidiaries would continue to operate as normal.[111] A group of Wall Street firms agreed to provide capital and financial assistance for the bank's orderly liquidation and the Federal Reserve, in turn, agreed to a swap of lower-quality assets in exchange for loans and other assistance from the government.[113] The morning witnessed scenes of Lehman employees removing files, items with the company logo, and other belongings from the world headquarters at 745 Seventh Avenue. The spectacle continued throughout the day and into the following day.[114]

Brian Marsal, co-chief executive of the restructuring firm Alvarez and Marsal was appointed as Chief restructuring officer and subsequently Chief executive officer of the company.[115]

Later that day, the Australian Securities Exchange (ASX) suspended Lehman's Australian subsidiary as a market participant after clearing-houses terminated contracts with the firm.[116] Lehman shares tumbled over 90% on September 15, 2008.[117][118] The Dow Jones closed down just over 500 points on September 15, 2008, which was at the time the largest drop in a single day since the days following the attacks on September 11, 2001.[119]

In the United Kingdom, the investment bank went to administration with PricewaterhouseCoopers appointed as administrators.[120] In Japan, the Japanese branch, Lehman Brothers Japan Inc., and its holding company filed for civil reorganization on September 16, 2008, in Tokyo District Court.[121] On September 17, 2008, the New York Stock Exchange delisted Lehman Brothers.[122]

On March 16, 2011 some three years after filing for bankruptcy and following a filing in a Manhattan U.S. bankruptcy court, Lehman Brothers Holdings Inc announced it would seek creditor approval of its reorganization plan by October 14 followed by a confirmation hearing to follow on November 17.[123][124]

Liquidation Edit

Barclays acquisition Edit

On September 16, 2008, Barclays PLC announced that they would acquire a "stripped clean" portion of Lehman for $1.75 billion, including most of Lehman's North America operations.[11][125] On September 20, 2008, a revised version of the deal, a $1.35 billion (£700 million) plan for Barclays to acquire the core business of Lehman (mainly its $960-million headquarters, a 38-story office building[126] in Midtown Manhattan, with responsibility for 9,000 former employees), was approved.[127][128] After a 7-hour hearing, U.S. bankruptcy judge James Peck ruled:

"I have to approve this transaction because it is the only available transaction. Lehman Brothers became a victim, in effect the only true icon to fall in a tsunami that has befallen the credit markets. This is the most momentous bankruptcy hearing I've ever sat through. It can never be deemed precedent for future cases. It's hard for me to imagine a similar emergency."[129]

Luc Despins, then a partner at Milbank, Tweed, Hadley & McCloy, the creditors committee counsel, said: "The reason we're not objecting is really based on the lack of a viable alternative. We did not support the transaction because there had not been enough time to properly review it."[130] In the amended agreement, Barclays would absorb $47.4 billion in securities and assume $45.5 billion in trading liabilities. Lehman's attorney Harvey R. Miller of Weil, Gotshal & Manges, said "the purchase price for the real estate components of the deal would be $1.29 billion, including $960 million for Lehman's New York headquarters and $330 million for two New Jersey data centers. Lehman's original estimate valued its headquarters at $1.02 billion but an appraisal from CB Richard Ellis this week valued it at $900 million."[131] Barclays were not to acquire Lehman's Eagle Energy unit, but to have entities known as Lehman Brothers Canada Inc, Lehman Brothers Sudamerica, Lehman Brothers Uruguay and its Private Investment Management business for high-net-worth individuals. Finally, Lehman would retain $20 billion of securities assets in Lehman Brothers Inc that are not being transferred to Barclays.[131] Barclays acquired a potential liability of $2.5 billion to be paid as severance, if it chooses not to retain some Lehman employees beyond the guaranteed 90 days.[132]

Nomura acquisition Edit

Nomura Holdings, Japan's top brokerage firm, agreed to buy the Asian division of Lehman Brothers for $225 million[133] and parts of the European division for a nominal fee of $2.[134][135] It would not take on any trading assets or liabilities in the European units. Nomura negotiated such a low price because it acquired only Lehman's employees in the regions, and not its stocks, bonds or other assets. The last Lehman Brothers Annual Report identified that these non-US subsidiaries of Lehman Brothers were responsible for over 50% of global revenue produced.[136]

Sale of asset management businesses Edit

On September 29, 2008, Lehman agreed to sell Neuberger Berman, part of its investment management business, to a pair of private-equity firms, Bain Capital Partners and Hellman & Friedman, for $2.15 billion.[137] The transaction was expected to close in early 2009, subject to approval by the U.S. Bankruptcy Court,[138] but a competing bid was entered by the firm's management, who ultimately prevailed in a bankruptcy auction on December 3, 2008. Creditors of Lehman Brothers Holdings Inc. retain a 49% common equity interest in the firm, now known as Neuberger Berman Group LLC.[139] In Europe, the Quantitative Asset Management Business has been acquired back by its employees on November 13, 2008 and has been renamed back to TOBAM.

Financial fallout Edit

Lehman's bankruptcy was the largest failure of an investment bank since Drexel Burnham Lambert collapsed in 1990 amid fraud allegations.[113] Immediately following the bankruptcy filing, an already distressed financial market began a period of extreme volatility, during which the Dow experienced its largest one day point loss, largest intra-day range (more than 1,000 points) and largest daily point gain. What followed was what many have called the "perfect storm" of economic distress factors and eventually a $700bn bailout package (Troubled Asset Relief Program) prepared by Henry Paulson, Secretary of the Treasury, and approved by Congress. The Dow eventually closed at a new six-year low of 7,552.29 on November 20, followed by a further drop to 6626 by March of the next year.

The fall of Lehman also had a strong effect on small private investors such as bond holders and holders of so-called Minibonds. In Germany, structured products, often based on an index, were sold mostly to private investors, elderly, retired persons, students and families. Most of those now worthless derivatives were sold by the German arm of Citigroup, the German Citibank now owned by Crédit Mutuel.[citation needed]

Ongoing litigation Edit

On March 11, 2010, Anton R. Valukas, a court-appointed examiner, published the results of its year-long investigation into the finances of Lehman Brothers.[140] This report revealed that Lehman Brothers used an accounting procedure termed repo 105 to temporarily exchange $50 billion of assets into cash just before publishing its financial statements.[141] The action could be seen to implicate both Ernst & Young, the bank's accountancy firm and Richard S. Fuld, Jr, the former CEO.[142] This could potentially lead to Ernst & Young being found guilty of financial malpractice and Fuld facing time in prison.[143] According to The Wall Street Journal, in March 2011, the SEC announced that they weren't confident that they could prove that Lehman Brothers violated US laws in its accounting practices.[144]

In October 2011 the administrators of Lehman Brothers Holding Inc. lost their appeal to overturn a court order forcing them to pay £148 million into their underfunded pensions plan.[145]

As of January 2016, Lehman paid more than $105 billion to its unsecured creditors. In addition, JPMorgan will pay $1.42 billion in cash to settle a lawsuit accusing JPMorgan of draining Lehman Brothers liquidity right before the crash. The settlement would permit another $1.496 billion to be paid to creditors and a separate $76 million deposit.[146]

Merger and acquisition history Edit

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):[147]

Lehman Brothers
(1994, spun off by American Express;
2008, bankrupt)

Shearson Lehman Hutton
(merged 1988)
Shearson Lehman Brothers
(merged 1984)
Shearson/American Express
(merged 1981)

American Express
(est. 1850)

Shearson Loeb Rhoades
(acquired 1981)
Shearson Hayden Stone
(merged 1973)
Hayden Stone, Inc.
 (formerly CBWL-Hayden Stone, merged 1970)

Cogan, Berlind, Weill & Levitt
(formerly Carter, Berlind, Potoma & Weill, est. 1960)

Hayden, Stone & Co.

Shearson, Hammill & Co.
(est. 1902)

Loeb, Rhoades, Hornblower & Co.
(merged 1978)
Loeb, Rhoades & Co.
(merged 1937)

Carl M. Loeb & Co.
(est. 1931)

Rhoades & Company
(est. 1905)

Hornblower, Weeks, Noyes & Trask
(merged 1953–1977)

Hornblower & Weeks
(est. 1888)

Hemphill, Noyes & Co.
(est. 1919, acq. 1963)

Spencer Trask & Co.
(est. 1866 as Trask & Brown)

Paul H. Davis & Co.
(est. 1920, acq. 1953)

Lehman Brothers Kuhn Loeb
(merged 1977)
Lehman Brothers
(merged 1975)

Abraham & Co.
(est. 1938)

Lehman Brothers
(est. 1850)

Kuhn, Loeb & Co.
(est. 1867)

E. F. Hutton & Co.
(est. 1904)

Neuberger Berman
(est. 1939, acq. 2003,
sold to management 2009)

Crossroads Group
(est. 1981, acq. 2003)

Former officers Edit

In popular culture Edit

The events of the weekend leading up to Lehman's bankruptcy are dramatized in the 2009 BBC television film The Last Days of Lehman Brothers.[148]

In the 2010 animated film Despicable Me, the main character Gru visits the Bank of Evil, which funds all evil plots for villains around the world and has a sign reading "Formerly Lehman Brothers".[149]

The 2011 drama film Margin Call focuses on the events of a 24-hour period at a large investment bank based on amalgam of investment banks, drawing heavily from the culture of Lehman Brothers. However, the events in the film are primarily a depiction of the actions of Goldman Sachs.

The 2011 HBO film Too Big to Fail recounts the days before Lehman Brothers declared bankruptcy and the fallout afterward.

The 2011 film Horrible Bosses features a character by the name of Kenny Sommerfield (played by P. J. Byrne) who worked at Lehman Brothers till its bankruptcy, ending up broke.[150]

The fall of Lehman Brothers is depicted in the 2015 film The Big Short, where two of the characters walk around the Lehman Brothers offices after the bankruptcy to see the main trading floor.

In Imbolo Mbue's 2016 debut novel Behold the Dreamers, an immigrant from Cameroon is a chauffeur for Clark Edwards, an executive at Lehman Brothers.

In the 2016 animated film Zootopia, there is a brief appearance of a bank called Lemming Brothers, which is staffed by lemmings.

The Lehman Trilogy is a three-act play by Italian dramatist Stefano Massini about the history of the Lehman Brothers.[148]

In the 2019 Showtime comedy series Black Monday, a fictionalized version of Lehman Brothers with an altered spelling is central to the plot and represented by brothers Larry & Lenny Leighman.

Principal locations (first year of occupancy) Edit

* Henry Lehman established his first store location on Commerce Street, in Montgomery, in 1845. In 1848, one year after Emanuel's arrival, the brothers moved "H. Lehman & Bro." to 17 Court Square, where it remained when Mayer arrived in 1850, forming "Lehman Brothers".
** Designated as a landmark by the New York City Landmarks Preservation Committee in 1996.
*** Sales and trading personnel had been in this location since 1977; they were joined by the firm's investment bankers and brokers in 1980.

See also Edit

References Edit

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Further reading Edit

  • Auletta, Ken. Greed and Glory on Wall Street: The Fall of the House of Lehman. Random House, 1985
  • Bernhard, William, L., Birge, June Rossbach Bingham, Loeb, John L., Jr. Lots of Lehmans: The Family of Mayer Lehman of Lehman Brothers, Remembered by His Descendants. Center for Jewish History, 2007.
  • Birmingham, Stephen. Our Crowd: The Great Jewish Families of New York. Harper and Row, 1967.
  • Dillian, Jared, Street Freak: Money and Madness at Lehman Brothers: A Memoir, New York: Simon and Schuster, September 13, 2011. ISBN 978-1-4391-8126-3
  • Geisst, Charles R. The Last Partnerships. McGraw-Hill, 1997
  • Shirkhedkar, Jayant. Saving Lehman, One person at a time. McGraw-Hill, 2007
  • Lehman Brothers. A Centennial – Lehman Brothers 1850–1950. Spiral Press, 1950
  • Schack, Justin (May 2005). "Restoring the House of Lehman". Institutional Investor, p. 24–32.
  • Wechsberg, Joseph. The Merchant Bankers. Pocket Books, 1968
  • Nocera, Joe (September 11, 2009). "Lehman Had to Die So Global Finance Could Live". The New York Times.
  • Lawrence, G. McDonald. (2009) A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers. Crown Business
  • Sorkin, A. Ross (2009). Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System—and Themselves. Viking Adult
  • Kane and Stollery (2013). "Lessons learned: an exchange of view".
  • Overton, Winston (2013). Wall Street Scandals: Greed and Trading on Wall Street the American Way. Xlibris. ISBN 978-1479772490.
  • Kane and Stollery (2018). "5 years on: what have we learned: an exchange of views".

External links Edit

 
Wikimedia Commons has media related to Lehman Brothers.

September 04, 2023
lehman, brothers, mən, american, global, financial, services, firm, founded, 1847, before, filing, bankruptcy, 2008, lehman, fourth, largest, investment, bank, united, states, behind, goldman, sachs, morgan, stanley, merrill, lynch, with, about, employees, wor. Lehman Brothers Inc ˈ l iː m en LEE men was an American global financial services firm founded in 1847 2 Before filing for bankruptcy in 2008 Lehman was the fourth largest investment bank in the United States behind Goldman Sachs Morgan Stanley and Merrill Lynch with about 25 000 employees worldwide 3 4 It was doing business in investment banking equity fixed income and derivatives sales and trading especially U S Treasury securities research investment management private equity and private banking Lehman was operational for 158 years from its founding in 1850 until 2008 5 Lehman Brothers Holdings Inc Lehman Brothers headquarters in Times Square a year before the company s collapseTrade nameLehman BrothersTypePublic companyTraded asNYSE LEHIndustryInvestment servicesPredecessorH Lehman and Bro Founded1850Montgomery Alabama U S 1 FoundersHenry Emanuel and Mayer LehmanDefunctSeptember 15 2008 14 years ago 2008 09 15 FateChapter 11 bankruptcy LiquidationSuccessorsNomura Holdings BarclaysHeadquartersNew York City New York United StatesArea servedWorldwideKey peopleRobert Lehman Pete Peterson Richard FuldProductsFinancial services Investment banking Investment managementNumber of employees26 200 2008 SubsidiariesLehman Brothers Inc Neuberger Berman Inc Aurora Loan Services LLC SIB Mortgage Corporation Lehman Brothers Bank FSB Eagle Energy Partners and the Crossroads GroupWebsitewww lehman comOn September 15 2008 Lehman Brothers filed for Chapter 11 bankruptcy protection following the exodus of most of its clients drastic declines in its stock price and the devaluation of assets by credit rating agencies The collapse was largely due to Lehman s involvement in the subprime mortgage crisis and its exposure to less liquid assets 6 7 8 Lehman s bankruptcy filing was the largest in US history 9 and is thought to have played a major role in the unfolding of the financial crisis of 2007 2008 The market collapse also gave support to the too big to fail doctrine 10 After Lehman Brothers filed for bankruptcy global markets immediately plummeted The following day major British bank Barclays announced its agreement to purchase subject to regulatory approval a significant and controlling interest in Lehman s North American investment banking and trading divisions along with its New York headquarters building 11 12 On September 20 2008 a revised version of that agreement was approved by U S Bankruptcy Court Judge James M Peck 13 The next week Nomura Holdings announced that it would acquire Lehman Brothers franchise in the Asia Pacific region including Japan Hong Kong and Australia 14 as well as Lehman Brothers investment banking and equities businesses in Europe and the Middle East The deal became effective on October 13 2008 15 Contents 1 History 1 1 Under the Lehman family 1850 1969 1 2 An evolving partnership 1969 1984 1 3 Merger with American Express 1984 1994 1 4 Divestment and independence 1994 2008 1 5 Response to September 11 2001 attacks 1 6 June 2003 SEC litigation 2 Rise of mortgage origination 1997 2006 3 Collapse 3 1 Causes 3 1 1 Malfeasance 3 1 2 Subprime mortgage crisis 3 1 3 Short selling allegations 3 2 Bankruptcy 3 3 Liquidation 3 3 1 Barclays acquisition 3 3 2 Nomura acquisition 3 3 3 Sale of asset management businesses 3 4 Financial fallout 3 5 Ongoing litigation 4 Merger and acquisition history 5 Former officers 6 In popular culture 7 Principal locations first year of occupancy 8 See also 9 References 10 Further reading 11 External linksHistory EditUnder the Lehman family 1850 1969 Edit See also Lehman family nbsp Emanuel and Mayer LehmanIn 1844 23 year old Henry Lehman 16 the son of a Jewish cattle merchant emigrated to the United States from Rimpar Bavaria 17 He settled in Montgomery Alabama 16 where he opened a dry goods store H Lehman 18 In 1847 following the arrival of his brother Emanuel Lehman the firm became H Lehman and Bro 2 With the arrival of their youngest brother Mayer Lehman in 1850 the firm changed its name again and Lehman Brothers was founded 18 19 During the 1850s cotton was one of the most important crops in the United States and was Alabama s highest grossing cash crop Until the U S Civil War nearly all U S cotton was produced by slave labor and by the 1860 census slaves constituted nearly 45 of Alabama s total population 20 Mayer Lehman was listed as the owner of seven slaves three males and four females ranging in age from 5 to 50 in the U S Census of 1860 21 Capitalizing on cotton s high market value the three brothers began to routinely accept raw cotton from slave plantations as payment for merchandise eventually beginning a second business trading in cotton Within a few years this business grew to become the most significant part of their operation Following Henry s death from yellow fever in 1855 18 22 the remaining brothers continued to focus on their commodities trading brokerage operations By 1858 the center of cotton trading had shifted from the South to New York City where factors and commission houses were based Lehman opened its first branch office at 119 Liberty Street 22 23 and 32 year old Emanuel relocated there to run the office 18 In 1862 facing difficulties as a result of the Civil War the firm teamed up with a cotton merchant named John Durr to form Lehman Durr amp Co 24 25 Following the war the company helped finance Alabama s reconstruction The firm s headquarters were eventually moved to New York City where it helped found the New York Cotton Exchange in 1870 commodifying the crop 22 26 Emanuel sat on the board of governors until 1884 The firm also dealt in the emerging market for railroad bonds and entered the financial advisory business 27 Lehman became a member of the Coffee Exchange as early as 1883 and finally the New York Stock Exchange in 1887 22 26 In 1899 it underwrote its first public offering the preferred and common stock of the International Steam Pump Company 28 Despite the offering of International Steam the firm s real shift from being a commodities house to a house of issue did not begin until 1906 23 29 In that year under Emanuel s son Philip Lehman the firm partnered with Goldman Sachs amp Co 29 30 31 to bring the General Cigar Co to market 32 followed closely by Sears Roebuck and Company 32 Among these were F W Woolworth Company 32 33 May Department Stores Company Gimbel Brothers Inc 34 R H Macy amp Company 34 The Studebaker Corporation 33 the B F Goodrich Co 27 and Endicott Johnson Corporation Following Philip Lehman s retirement in 1925 his son Robert Bobbie Lehman took over as head of the firm 23 35 36 During Bobbie s tenure the company weathered the capital crisis of the Great Depression by focusing on venture capital while the equities market recovered 37 In 1924 John M Hancock became the first non family member to join the firm 30 38 followed by Monroe C Gutman and Paul Mazur who became partners in 1927 39 40 By 1928 the firm had moved to its One William Street location 41 nbsp Pete PetersonIn the 1930s Lehman underwrote the initial public offering of the first television manufacturer DuMont Laboratories and helped fund the Radio Corporation of America RCA 42 It also helped finance the rapidly growing oil industry including the companies Halliburton and Kerr McGee In the 1950s Lehman underwrote the IPO of Digital Equipment Corporation 43 Later it arranged the acquisition of Digital by Compaq An evolving partnership 1969 1984 Edit Robert Lehman died in 1969 after 44 years in a leadership position for the firm leaving no member of the Lehman family actively involved with the partnership 23 At the same time Lehman was facing strong headwinds amidst the difficult economic environment of the early 1970s By 1972 the firm was facing hard times and in 1973 Pete Peterson chairman and chief executive officer of the Bell amp Howell Corporation was brought in to save the firm 44 45 Under Peterson s leadership as chairman and CEO the firm acquired Abraham amp Co in 1975 and two years later merged with Kuhn Loeb amp Co 45 to form Lehman Brothers Kuhn Loeb Inc the country s fourth largest investment bank behind Salomon Brothers Goldman Sachs and First Boston 46 Peterson led the firm from significant operating losses to five consecutive years of record profits with a return on equity among the highest in the investment banking industry 44 47 By the early 1980s hostilities between the firm s investment bankers and traders prompted Peterson to promote Lewis Glucksman the firm s President COO and former trader to be his co CEO in May 1983 29 Glucksman introduced a number of changes that had the effect of increasing tensions which when coupled with Glucksman s management style and a downturn in the markets resulted in a power struggle that ousted Peterson and left Glucksman as the sole CEO 44 48 Upset bankers who had soured over the power struggle left the company Stephen A Schwarzman chairman of the firm s M amp A committee recalled in a February 2003 interview with Private Equity International that Lehman Brothers had an extremely competitive internal environment which ultimately became dysfunctional The company suffered under the disintegration and Glucksman was pressured into selling the firm 44 49 Merger with American Express 1984 1994 Edit nbsp Shearson Lehman American Express LogoMain article Shearson Lehman Hutton Shearson American Express an American Express owned securities company focused on brokerage rather than investment banking acquired Lehman in 1984 for 360 million 50 On May 11 the combined firms became Shearson Lehman American Express 48 From 1983 to 1990 Peter A Cohen was CEO and chairman of Shearson Lehman Brothers 51 where he led the 1 billion purchase of E F Hutton to form Shearson Lehman Hutton 52 53 In 1989 Shearson backed F Ross Johnson s management team in its attempted management buyout of RJR Nabisco but were ultimately outbid by private equity firm Kohlberg Kravis Roberts who was backed by Drexel Burnham Lambert 54 Divestment and independence 1994 2008 Edit In 1993 under newly appointed CEO Harvey Golub American Express began to divest itself of its banking and brokerage operations It sold its retail brokerage and asset management operations to Primerica 55 and in 1994 it spun off Lehman Brothers Kuhn Loeb in an initial public offering as Lehman Brothers Holdings Inc 56 After being spun off Dick Fuld became CEO of the company 57 Fuld steered Lehman through the 1997 Asian Financial Crisis 58 and when the Long Term Capital Management hedge fund collapsed in 1998 59 60 In 2001 the firm acquired the private client services or PCS business of Cowen amp Co 61 and later in 2003 aggressively re entered the asset management business which it had exited in 1989 62 Beginning with 2 billion in assets under management the firm acquired the Crossroads Group the fixed income division of Lincoln Capital Management 62 and Neuberger Berman 63 These businesses together with the PCS business and Lehman s private equity business comprised the Investment Management Division 64 which generated approximately 3 1 billion in net revenue 65 During the subprime mortgage crisis Fuld kept his job while CEOs of rivals like Bear Stearns Merrill Lynch and Citigroup were forced to resign 60 In addition Lehman s board of directors which included retired CEOs like Vodafone s Christopher Gent and IBM s John Akers were reluctant to challenge Fuld as the firm s share price spiraled lower In May 2008 prior to going bankrupt the firm had 639 billion in assets 66 Response to September 11 2001 attacks Edit nbsp The former New York City headquarters now owned by Barclays On September 11 2001 Lehman occupied three floors 38 40 of 1 World Trade Center where one of its employees was killed in the terrorist attacks of that day 67 68 Its global headquarters in Three World Financial Center were severely damaged and rendered unusable by falling debris displacing over 6 500 employees 67 Trading operations moved to Jersey City New Jersey 69 When stock markets reopened on September 17 2001 Lehman s sales and trading capabilities were restored 70 In the ensuing months the firm spread its operations across New York City in over 40 temporary locations 71 The investment banking division converted the first floor lounges restaurants and all 665 guest rooms of the Sheraton Manhattan Hotel into office space 71 The bank also experimented with flextime to share office space and remote work via virtual private networking after the attacks 72 73 In October 2001 Lehman purchased a 32 story 1 050 000 square foot 98 000 m2 office building for a reported sum of 700 million 74 75 The building located at 745 Seventh Avenue had recently been completed and not yet occupied by rival Morgan Stanley 74 75 Lehman began moving into the new facility in January and finished in March 2002 76 The firm did not return to Three World Financial Center as its structural integrity had not been given a clean bill of health and the company could not have waited for repairs to Three World Financial Center to conclude 77 78 After the attacks Lehman s management placed increased emphasis on business continuity planning 79 Aside from its headquarters in Three World Financial Center Lehman maintained operations and backoffice facilities in Jersey City space that the firm considered leaving prior to 9 11 73 The space was not only retained but expanded including the construction of a backup trading facility 73 June 2003 SEC litigation Edit In June 2003 the company was one of ten firms which simultaneously entered into a settlement with the U S Securities and Exchange Commission SEC the Office of the New York State Attorney General and various other securities regulators regarding undue influence over each firm s research analysts by its investment banking divisions 80 81 Regulators alleged that the firms had improperly associated analyst compensation with the firms investment banking revenues and promised favorable market moving research coverage in exchange for underwriting opportunities 82 The settlement known as the global settlement provided for total financial penalties of 1 4 billion including 80 million against Lehman and structural reforms including a complete separation of investment banking departments from research departments no analyst compensation directly or indirectly from investment banking revenues and the provision of free independent third party research to the firms clients 80 81 Rise of mortgage origination 1997 2006 EditLehman was one of the first Wall Street firms to move into the business of mortgage origination In 1997 Lehman bought Colorado based lender Aurora Loan Services an Alt A lender In 2000 to expand their mortgage origination pipeline Lehman purchased West Coast subprime mortgage lender BNC Mortgage LLC Lehman quickly became a force in the subprime market By 2003 Lehman made 18 2 billion in loans and ranked third in lending By 2004 this number topped 40 billion By 2006 Aurora and BNC were lending almost 50 billion per month 83 By 2008 Lehman had assets of 680 billion supported by only 22 5 billion of firm capital From an equity position its risky commercial real estate holdings were thirty times greater than capital In such a highly leveraged structure a 3 to 5 percent decline in real estate values would wipe out all capital 84 Collapse EditMain article Bankruptcy of Lehman Brothers Causes Edit Malfeasance Edit 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 This practice was a type of repurchase agreement that temporarily removed securities from the company s balance sheet However unlike typical repurchase agreements these deals were described by Lehman as the outright sale of securities and created a materially misleading picture of the firm s financial condition in late 2007 and 2008 85 as well as the Credit default swaps where boardroom went to AIG insured those mortgages and then collected after they defaulted knowing they were no good to begin with which led to the downfall of AIG starting in fall of 2007 Subprime mortgage crisis Edit In August 2007 the firm closed its subprime lender BNC Mortgage eliminating 1 200 positions in 23 locations and took an after tax charge of 25 million and a 27 million reduction in goodwill Lehman said that poor market conditions in the mortgage space necessitated a substantial reduction in its resources and capacity in the subprime space 86 In September 2007 Joe Gregory appointed Erin Callan as CFO On March 16 2008 after rival Bear Stearns was taken over by JPMorgan Chase in a fire sale market analysts suggested that Lehman would be the next major investment bank to fall Callan fielded Lehman s first quarter conference call where the firm posted a profit of 489 million compared to Citigroup s 5 1 billion and Merrill Lynch s 1 97 billion losses which was Lehman s 55th consecutive profitable quarter The firm s stock price leapt 46 percent after that announcement 76 87 88 89 In 2008 Lehman faced an unprecedented loss to the continuing subprime mortgage crisis Lehman s loss was a result of having held on to large positions in subprime and other lower rated mortgage tranches when securitizing the underlying mortgages it is unclear whether Lehman was simply unable to sell the lower rated bonds or voluntarily kept them In any event huge losses accrued in lower rated mortgage backed securities throughout 2008 In the second fiscal quarter Lehman reported losses of 2 8 billion and was forced to sell off 6 billion in assets 90 In the first half of 2008 alone Lehman stock lost 73 of its value as the credit market continued to tighten 90 On June 9 2008 Lehman Brothers announced US 2 8 billion second quarter loss its first since being spun off from American Express as market volatility rendered many of its hedges ineffective during that time Lehman also reported that it had raised a further 6 billion in capital As a result there was major management shakeup in which Hugh Skip McGee III head of investment banking held a meeting with senior staff to strip CEO Richard Fuld and his lieutenants of their authority Consequently Joe Gregory agreed to resign as president and COO and afterward he told Erin Callan that she had to resign as CFO Callan was appointed CFO of Lehman in 2008 but served only for six months before departing after her mentor Joe Gregory was demoted 87 88 89 Bart McDade was named to succeed Gregory as president and COO when several senior executives threatened to leave if he was not promoted McDade took charge and brought back Michael Gelband and Alex Kirk who had previously been pushed out of the firm by Gregory for not taking risks Although Fuld remained CEO he soon became isolated from McDade s team 76 91 In August 2008 Lehman reported that it intended to release 6 of its work force 1 500 people just ahead of its third quarter reporting deadline in September 90 On August 22 2008 shares in Lehman closed up 5 16 for the week on reports that the state controlled Korea Development Bank was considering buying the bank 92 Most of those gains were quickly eroded as news came in that Korea Development Bank was facing difficulties pleasing regulators and attracting partners for the deal 93 On September 9 Lehman s shares plunged 45 to 7 79 after it was reported that the state run South Korean firm had put talks on hold 94 Investor confidence continued to erode as Lehman s stock lost roughly half its value and pushed the S amp P 500 down 3 4 on September 9 The Dow Jones lost 300 points the same day on investors concerns about the security of the bank 95 The U S government did not announce any plans to assist with any possible financial crisis that emerged at Lehman 96 The next day Lehman announced a loss of 3 9 billion and its intent to sell off a majority stake in its investment management business which included Neuberger Berman 97 98 The stock slid seven percent that day 98 99 Lehman after earlier rejecting questions on the sale of the company was reportedly searching for a buyer as its stock price dropped another 40 percent on September 11 2008 99 Just before the collapse of Lehman Brothers executives at Neuberger Berman sent e mail memos suggesting among other things that the Lehman Brothers top people forgo multimillion dollar bonuses to send a strong message to both employees and investors that management is not shirking accountability for recent performance 100 Lehman Brothers Investment Management Director George Herbert Walker IV dismissed the proposal going so far as to actually apologize to other members of the Lehman Brothers executive committee for the idea having been suggested He wrote Sorry team I am not sure what s in the water at Neuberger Berman I m embarrassed and I apologize 100 Short selling allegations Edit During hearings on the bankruptcy filing by Lehman Brothers and bailout of AIG before the House Committee on Oversight and Government Reform 101 former Lehman Brothers CEO Richard Fuld said a host of factors including a crisis of confidence and naked short selling attacks followed by false rumors contributed to both the collapse of Bear Stearns and Lehman Brothers House committee Chairman Henry Waxman said the committee received thousands of pages of internal documents from Lehman and these documents portray a company in which there was no accountability for failure 102 103 104 An article by journalist Matt Taibbi in Rolling Stone contended that naked short selling contributed to the demise of both Lehman and Bear Stearns 105 A study by finance researchers at the University of Oklahoma Price College of Business studied trading in financial stocks including Lehman Brothers and Bear Stearns and found no evidence that stock price declines were caused by naked short selling 106 Bankruptcy Edit On Saturday September 13 2008 Timothy F Geithner then the president of the Federal Reserve Bank of New York called a meeting on the future of Lehman which included the possibility of an emergency liquidation of its assets 107 Lehman reported that it had been in talks with Bank of America and Barclays for the company s possible sale however both Barclays and Bank of America ultimately declined to purchase the entire company in the former case because the British government in particular the Chancellor of the Exchequer Alastair Darling and the CEO of the Financial Services Authority Hector Sants refused to allow the transaction at the last minute quoting stockholder regulations in the UK despite a deal having apparently been completed 107 108 The next day Sunday September 14 the International Swaps and Derivatives Association ISDA offered an exceptional trading session to allow market participants to offset positions in various derivatives on the condition of a Lehman bankruptcy later that day 109 Although the bankruptcy filing missed the deadline many dealers honored the trades they made in the special session 110 nbsp Lehman Brothers headquarters in New York City on September 15 2008Shortly before 1 am Monday morning UTC 5 Lehman Brothers Holdings announced it would file for Chapter 11 bankruptcy protection 111 citing bank debt of 613 billion 155 billion in bond debt and assets worth 639 billion 112 It further announced that its subsidiaries would continue to operate as normal 111 A group of Wall Street firms agreed to provide capital and financial assistance for the bank s orderly liquidation and the Federal Reserve in turn agreed to a swap of lower quality assets in exchange for loans and other assistance from the government 113 The morning witnessed scenes of Lehman employees removing files items with the company logo and other belongings from the world headquarters at 745 Seventh Avenue The spectacle continued throughout the day and into the following day 114 Brian Marsal co chief executive of the restructuring firm Alvarez and Marsal was appointed as Chief restructuring officer and subsequently Chief executive officer of the company 115 Later that day the Australian Securities Exchange ASX suspended Lehman s Australian subsidiary as a market participant after clearing houses terminated contracts with the firm 116 Lehman shares tumbled over 90 on September 15 2008 117 118 The Dow Jones closed down just over 500 points on September 15 2008 which was at the time the largest drop in a single day since the days following the attacks on September 11 2001 119 In the United Kingdom the investment bank went to administration with PricewaterhouseCoopers appointed as administrators 120 In Japan the Japanese branch Lehman Brothers Japan Inc and its holding company filed for civil reorganization on September 16 2008 in Tokyo District Court 121 On September 17 2008 the New York Stock Exchange delisted Lehman Brothers 122 On March 16 2011 some three years after filing for bankruptcy and following a filing in a Manhattan U S bankruptcy court Lehman Brothers Holdings Inc announced it would seek creditor approval of its reorganization plan by October 14 followed by a confirmation hearing to follow on November 17 123 124 Liquidation Edit Barclays acquisition EditOn September 16 2008 Barclays PLC announced that they would acquire a stripped clean portion of Lehman for 1 75 billion including most of Lehman s North America operations 11 125 On September 20 2008 a revised version of the deal a 1 35 billion 700 million plan for Barclays to acquire the core business of Lehman mainly its 960 million headquarters a 38 story office building 126 in Midtown Manhattan with responsibility for 9 000 former employees was approved 127 128 After a 7 hour hearing U S bankruptcy judge James Peck ruled I have to approve this transaction because it is the only available transaction Lehman Brothers became a victim in effect the only true icon to fall in a tsunami that has befallen the credit markets This is the most momentous bankruptcy hearing I ve ever sat through It can never be deemed precedent for future cases It s hard for me to imagine a similar emergency 129 Luc Despins then a partner at Milbank Tweed Hadley amp McCloy the creditors committee counsel said The reason we re not objecting is really based on the lack of a viable alternative We did not support the transaction because there had not been enough time to properly review it 130 In the amended agreement Barclays would absorb 47 4 billion in securities and assume 45 5 billion in trading liabilities Lehman s attorney Harvey R Miller of Weil Gotshal amp Manges said the purchase price for the real estate components of the deal would be 1 29 billion including 960 million for Lehman s New York headquarters and 330 million for two New Jersey data centers Lehman s original estimate valued its headquarters at 1 02 billion but an appraisal from CB Richard Ellis this week valued it at 900 million 131 Barclays were not to acquire Lehman s Eagle Energy unit but to have entities known as Lehman Brothers Canada Inc Lehman Brothers Sudamerica Lehman Brothers Uruguay and its Private Investment Management business for high net worth individuals Finally Lehman would retain 20 billion of securities assets in Lehman Brothers Inc that are not being transferred to Barclays 131 Barclays acquired a potential liability of 2 5 billion to be paid as severance if it chooses not to retain some Lehman employees beyond the guaranteed 90 days 132 Nomura acquisition Edit Nomura Holdings Japan s top brokerage firm agreed to buy the Asian division of Lehman Brothers for 225 million 133 and parts of the European division for a nominal fee of 2 134 135 It would not take on any trading assets or liabilities in the European units Nomura negotiated such a low price because it acquired only Lehman s employees in the regions and not its stocks bonds or other assets The last Lehman Brothers Annual Report identified that these non US subsidiaries of Lehman Brothers were responsible for over 50 of global revenue produced 136 Sale of asset management businesses Edit On September 29 2008 Lehman agreed to sell Neuberger Berman part of its investment management business to a pair of private equity firms Bain Capital Partners and Hellman amp Friedman for 2 15 billion 137 The transaction was expected to close in early 2009 subject to approval by the U S Bankruptcy Court 138 but a competing bid was entered by the firm s management who ultimately prevailed in a bankruptcy auction on December 3 2008 Creditors of Lehman Brothers Holdings Inc retain a 49 common equity interest in the firm now known as Neuberger Berman Group LLC 139 In Europe the Quantitative Asset Management Business has been acquired back by its employees on November 13 2008 and has been renamed back to TOBAM Financial fallout Edit Lehman s bankruptcy was the largest failure of an investment bank since Drexel Burnham Lambert collapsed in 1990 amid fraud allegations 113 Immediately following the bankruptcy filing an already distressed financial market began a period of extreme volatility during which the Dow experienced its largest one day point loss largest intra day range more than 1 000 points and largest daily point gain What followed was what many have called the perfect storm of economic distress factors and eventually a 700bn bailout package Troubled Asset Relief Program prepared by Henry Paulson Secretary of the Treasury and approved by Congress The Dow eventually closed at a new six year low of 7 552 29 on November 20 followed by a further drop to 6626 by March of the next year The fall of Lehman also had a strong effect on small private investors such as bond holders and holders of so called Minibonds In Germany structured products often based on an index were sold mostly to private investors elderly retired persons students and families Most of those now worthless derivatives were sold by the German arm of Citigroup the German Citibank now owned by Credit Mutuel citation needed Ongoing litigation Edit This section needs to be updated Please help update this article to reflect recent events or newly available information June 2018 On March 11 2010 Anton R Valukas a court appointed examiner published the results of its year long investigation into the finances of Lehman Brothers 140 This report revealed that Lehman Brothers used an accounting procedure termed repo 105 to temporarily exchange 50 billion of assets into cash just before publishing its financial statements 141 The action could be seen to implicate both Ernst amp Young the bank s accountancy firm and Richard S Fuld Jr the former CEO 142 This could potentially lead to Ernst amp Young being found guilty of financial malpractice and Fuld facing time in prison 143 According to The Wall Street Journal in March 2011 the SEC announced that they weren t confident that they could prove that Lehman Brothers violated US laws in its accounting practices 144 In October 2011 the administrators of Lehman Brothers Holding Inc lost their appeal to overturn a court order forcing them to pay 148 million into their underfunded pensions plan 145 As of January 2016 Lehman paid more than 105 billion to its unsecured creditors In addition JPMorgan will pay 1 42 billion in cash to settle a lawsuit accusing JPMorgan of draining Lehman Brothers liquidity right before the crash The settlement would permit another 1 496 billion to be paid to creditors and a separate 76 million deposit 146 Merger and acquisition history EditThe following is an illustration of the company s major mergers and acquisitions and historical predecessors this is not a comprehensive list 147 Lehman Brothers 1994 spun off by American Express 2008 bankrupt Shearson Lehman Hutton merged 1988 Shearson Lehman Brothers merged 1984 Shearson American Express merged 1981 American Express est 1850 Shearson Loeb Rhoades acquired 1981 Shearson Hayden Stone merged 1973 Hayden Stone Inc formerly CBWL Hayden Stone merged 1970 Cogan Berlind Weill amp Levitt formerly Carter Berlind Potoma amp Weill est 1960 Hayden Stone amp Co Shearson Hammill amp Co est 1902 Loeb Rhoades Hornblower amp Co merged 1978 Loeb Rhoades amp Co merged 1937 Carl M Loeb amp Co est 1931 Rhoades amp Company est 1905 Hornblower Weeks Noyes amp Trask merged 1953 1977 Hornblower amp Weeks est 1888 Hemphill Noyes amp Co est 1919 acq 1963 Spencer Trask amp Co est 1866 as Trask amp Brown Paul H Davis amp Co est 1920 acq 1953 Lehman Brothers Kuhn Loeb merged 1977 Lehman Brothers merged 1975 Abraham amp Co est 1938 Lehman Brothers est 1850 Kuhn Loeb amp Co est 1867 E F Hutton amp Co est 1904 Neuberger Berman est 1939 acq 2003 sold to management 2009 Crossroads Group est 1981 acq 2003 Former officers EditRichard S Fuld Jr Scott J Freidheim Rodger Krouse born 1961 Jack Langer born 1948 1949 basketball player and investment banker Bart McDade Hugh McGee George Herbert Walker IV Frederick M Warburg Joseph RosenbergIn popular culture EditThis section appears to contain trivial minor or unrelated references to popular culture Please reorganize this content to explain the subject s impact on popular culture providing citations to reliable secondary sources rather than simply listing appearances Unsourced material may be challenged and removed March 2023 The events of the weekend leading up to Lehman s bankruptcy are dramatized in the 2009 BBC television film The Last Days of Lehman Brothers 148 In the 2010 animated film Despicable Me the main character Gru visits the Bank of Evil which funds all evil plots for villains around the world and has a sign reading Formerly Lehman Brothers 149 The 2011 drama film Margin Call focuses on the events of a 24 hour period at a large investment bank based on amalgam of investment banks drawing heavily from the culture of Lehman Brothers However the events in the film are primarily a depiction of the actions of Goldman Sachs The 2011 HBO film Too Big to Fail recounts the days before Lehman Brothers declared bankruptcy and the fallout afterward The 2011 film Horrible Bosses features a character by the name of Kenny Sommerfield played by P J Byrne who worked at Lehman Brothers till its bankruptcy ending up broke 150 The fall of Lehman Brothers is depicted in the 2015 film The Big Short where two of the characters walk around the Lehman Brothers offices after the bankruptcy to see the main trading floor In Imbolo Mbue s 2016 debut novel Behold the Dreamers an immigrant from Cameroon is a chauffeur for Clark Edwards an executive at Lehman Brothers In the 2016 animated film Zootopia there is a brief appearance of a bank called Lemming Brothers which is staffed by lemmings The Lehman Trilogy is a three act play by Italian dramatist Stefano Massini about the history of the Lehman Brothers 148 In the 2019 Showtime comedy series Black Monday a fictionalized version of Lehman Brothers with an altered spelling is central to the plot and represented by brothers Larry amp Lenny Leighman Principal locations first year of occupancy Edit17 Court Square Montgomery Alabama 1847 151 119 Liberty Street New York NY 1858 151 176 Fulton Street New York NY 1865 1866 26 151 133 35 Pearl Street New York NY 1867 26 151 40 Exchange Place New York NY 1876 26 151 16 William Street New York NY 1892 151 One William Street New York NY 1928 151 55 Water Street 1980 152 3 World Financial Center 1985 153 745 Seventh Avenue New York NY 2002 154 Henry Lehman established his first store location on Commerce Street in Montgomery in 1845 In 1848 one year after Emanuel s arrival the brothers moved H Lehman amp Bro to 17 Court Square where it remained when Mayer arrived in 1850 forming Lehman Brothers Designated as a landmark by the New York City Landmarks Preservation Committee in 1996 Sales and trading personnel had been in this location since 1977 they were joined by the firm s investment bankers and brokers in 1980 See also Edit nbsp Banks portal nbsp Companies portalLehman Brothers Treasury MF Global the largest Wall Street firm to collapse as it did in 2011 since the Lehman Brothers debacle in September 2008 Valukas Report on the failure of Lehman Bankruptcy in the United StatesReferences Edit History of the Lehman Brothers Harvard University Library Lehman Brothers Collection Retrieved December 1 2010 a b Bernhard William L Birge June Rossbach Bingham Loeb John L Jr Lots of Lehmans The Family of Mayer Lehman of Lehman Brothers Remembered by His Descendants Center For Jewish History 2007 page 5 Lehman Brothers declares bankruptcy HISTORY Retrieved July 6 2020 Wiggins Rosalind Piontek Thomas Metrick Andrew October 1 2014 The Lehman Brothers Bankruptcy A Overview PDF Archived from the original PDF on June 1 2021 Retrieved July 6 2020 Melvyn Dubofsky 2013 The Oxford Encyclopedia of American Busgle com books id D NMAgAAQBAJ amp pg PA470 Oxford University Press pp 470 ISBN 978 0 19 973881 6 Michael P Malloy 2010 Anatomy of a Meltdown A Dual Financial Biography of the Subprime Mortgage Crisis Wolters Kluwer Law amp Business ISBN 978 0 7355 9458 6 Asli Yuksel Mermod Samuel O Idowu August 29 2013 Corporate Social Responsibility in the Global Business World Springer Science amp Business Media pp 124 ISBN 978 3 642 37620 7 Williams Mark April 12 2010 Uncontrolled Risk McGraw Hill Education ISBN 978 0071638296 Mamudi Sam September 15 2005 Lehman folds with record 613 billion debt Marketwatch Williams Mark April 12 2010 Uncontrolled Risk McGraw Hill Education p 178 ISBN 978 0071638296 a b Barclays announces agreement to acquire Lehman Brothers North American investment banking and capital markets businesses Press release Barclays PLC September 17 2008 Archived from the original on December 13 2013 Retrieved September 17 2008 Barclays buys core Lehman assets BBC News September 17 2008 Judge approves 1 3 billion Lehman deal BBC News September 20 2008 Nomura to acquire Lehman Brothers Asia Pacific franchise Press release Nomura Holdings September 22 2008 Retrieved February 15 2012 Nomura to close acquisition of Lehman Brothers Europe and Middle East investment banking and equities businesses on October 13 Press release Nomura Holdings October 6 2008 Retrieved February 15 2012 a b Geisst Charles R The Last Partnerships McGraw Hill 1997 page 49 Bernhard William L Birge June Rossbach Bingham Loeb John L Jr Lots of Lehmans The Family of Mayer Lehman of Lehman Brothers Remembered by His Descendants Center For Jewish History 2007 page 1 a b c d Wechsberg Joseph The Merchant Bankers Pocket Books 1966 page 233 Birmingham Stephen Our Crowd The Great Jewish Families of New York Harper and Row 1967 page 47 Churchwell Sarah June 11 2019 The Lehman Trilogy and Wall Street s Debt to Slavery The New York Review of Books Retrieved September 30 2020 Lehman Bros 1 brother owned 7 slaves in 1860 USA Today February 21 2022 Archived from the original on May 23 2022 a b c d Geisst Charles R The Last Partnerships McGraw Hill 1997 page 50 a b c d Phillips McCandlish August 10 1969 ROBERT LEHMAN FINANCIER DEAD Robert Lehman Art Collector and Investment Banker Dies The New York Times Retrieved September 30 2020 Birmingham Stephen Our Crowd The Great Jewish Families of New York Harper and Row 1967 page 77 Bernhard William L Birge June Rossbach Bingham Loeb John L Jr Lots of Lehmans The Family of Mayer Lehman of Lehman Brothers Remembered by His Descendants Center For Jewish History 2007 page 8 a b c d e Wechsberg Joseph The Merchant Bankers Pocket Books 1966 page 235 a b Brownfiield Troy January 15 2019 The Company that Nearly Bankrupted America The Saturday Evening Post The Saturday Evening Post Retrieved September 30 2020 Swaine Robert T 1946 The Cravath Firm and Its Predecessors 1819 1947 The Lawbook Exchange Ltd p 633 ISBN 978 1 58477 713 7 Retrieved June 3 2014 a b c Auletta Ken February 17 1985 Power Greed and Glory on Wall Street The Fall of the Lehman Brothers The New York Times ISSN 0362 4331 Retrieved September 30 2020 a b Geisst Charles R The Last Partnerships McGraw Hill 1997 page 51 Geisst Charles R The Last Partnerships McGraw Hill 1997 page 285 a b c Wechsberg Joseph The Merchant Bankers Pocket Books 1966 page 238 a b Geisst Charles R The Last Partnerships McGraw Hill 1997 page 53 a b Wechsberg Joseph The Merchant Bankers Pocket Books 1966 page 241 Kapur Saranya November 7 2013 A Lehman Brothers Founder s Historic Mansion Just Sold As Trophy Office Space For 40 Million Business Insider Retrieved September 30 2020 Serwer Andy April 11 2006 CEO Dick Fuld s makeover of Lehman Brothers Apr 11 2006 CNN Money Retrieved September 30 2020 Crash of a titan The inside story of the fall of Lehman Brothers The Independent September 7 2009 Retrieved September 30 2020 John M Hancock Papers University of North Dakota Archived from the original on February 10 2007 Retrieved September 14 2008 Monroe Gutman 88 Lehman Executive The New York Times July 5 1974 ISSN 0362 4331 Retrieved September 30 2020 Waggoner Walter H August 1 1979 Paul M Mazur at 86 Lehman Bros Partner More Than 50 Years The New York Times ISSN 0362 4331 Retrieved September 30 2020 Chapman Peter September 2 2010 The Last of the Imperious Rich Lehman Brothers 1844 2008 Penguin p 94 ISBN 978 1 101 44270 8 Ingham John N 1983 Biographical Dictionary of American Business Leaders Greenwood Publishing Group ISBN 9780313213625 Retrieved September 14 2008 FACTBOX A brief history of Lehman Brothers Reuters September 13 2008 Retrieved September 30 2020 a b c d Ward Vicky April 5 2011 The Devil s Casino Friendship Betrayal and the High Stakes Games Played Inside Lehman Brothers John Wiley amp Sons ISBN 978 1 118 01149 2 a b Geisst Charles R The Last Partnerships McGraw Hill 1997 page 77 dead link Sloane Leonard November 29 1977 Lehman and Kuhn Loeb to Merge Lehman Brothers and Kuhn Loeb Sign Agreement to Merge December 16 The New York Times Ph D William F BAKER Ph D Michael O MALLEY August 13 2008 Leading with Kindness How Good People Consistently Get Superior Results AMACOM ISBN 978 0 8144 0175 0 a b Geisst Charles R The Last Partnerships McGraw Hill 1997 page 78 Staff P E I February 2003 Always bet on black Private Equity International Retrieved June 22 2020 Cole Robert J April 11 1984 Shearson to Pay 360 Million to Acquire Lehman Brothers The New York Times ISSN 0362 4331 Retrieved September 30 2020 Profile Peter A Cohen Forbes Archived from the original on February 4 2012 Retrieved February 15 2012 Cole Robert J December 4 1987 Company News Hutton Shearson Deal Announced The New York Times Shearson Lehman Buying out E F Hutton Rights Managed Pro corbis com Archived from the original on July 20 2012 Retrieved October 16 2010 History of the Rjr Nabisco Takeover The New York Times December 2 1988 ISSN 0362 4331 Retrieved September 30 2020 Quint Michael March 13 1993 Primerica Will Buy Shearson for 1 billion The New York Times Geisst Charles R The Last Partnerships McGraw Hill 1997 page 79 Anderson Jenny October 28 2007 The Survivor The New York Times ISSN 0362 4331 Retrieved September 30 2020 Salinger Lawrence M June 14 2013 Encyclopedia of White Collar and Corporate Crime SAGE Publications p 550 ISBN 978 1 4522 7616 8 Wilchins Dan June 3 2008 Lehman shares plunge on capital raising concern Reuters Retrieved September 30 2020 a b Christian Plumb and Dan Wilchins September 14 2008 Lehman CEO Fuld s hubris contributed to meltdown Reuters Retrieved February 15 2012 Charles Gasparino July 18 2000 Lehman Brothers to take over SG Cowen s brokerage division The Financial Express Archived from the original on May 14 2013 Retrieved February 15 2012 a b Christine Williamson Back Again Lehman returns to institutional management with Lincoln deal Purchase of fixed income business ends 13 year absence Pensions amp Investments Goliath Retrieved February 15 2012 Thomas Landon Jr July 23 2003 Market Place Lehman to Buy Neuberger Berman For 2 6 Billion The New York Times Gasparino Charlie August 4 2008 Lehman Weighs Sale of Investment Management Unit CNBC Retrieved September 30 2020 Lehman Brothers Holdings Inc SEC Retrieved September 30 2020 Wilchins Dan September 15 2008 Lehman files for bankruptcy plans to sell units Reuters Retrieved September 30 2020 a b Impact of 9 11 on Lehman Brothers Merrill Lynch and American Express CIO September 1 2002 Retrieved September 30 2020 Gibbs Geoff Adams Richard Pandya Nick Bowers Simon Branigan Tania Hall Sarah September 14 2001 Grim roll call of WTC companies The Guardian ISSN 0261 3077 Retrieved September 30 2020 Blair Jayson March 1 2002 Amex Coming Back to Lower Manhattan The New York Times ISSN 0362 4331 Retrieved September 30 2020 Berenson Alex September 17 2001 AFTER THE ATTACKS THE MARKETS Uncertainly Market Reopens Today The New York Times ISSN 0362 4331 Retrieved September 30 2020 a b Bill Egbert September 19 2001 Lehman Checks into Sheraton Daily News nydailynews com Archived from the original on May 14 2012 Retrieved February 15 2012 Hewlett Sylvia Ann May 15 2007 Off Ramps and On Ramps Keeping Talented Women on the Road to Success pp 43 6 48 50 4 passim ISBN 978 1 4221 5983 5 PMID 15768675 a href Template Cite book html title Template Cite book cite book a journal ignored help a b c Cast Study Lehman Brothers PDF Citrix com 2003 Archived from the original PDF on November 24 2012 Retrieved February 15 2012 a b Lehman buys NYC office building CNN October 8 2001 a b Bagli Charles V October 9 2001 Morgan Stanley Selling Nearly Completed Office Tower to Lehman for 700 Million The New York Times ISSN 0362 4331 a b c Print Page Nymag com Retrieved October 7 2013 Bagli Charles V September 10 2002 Tower at Financial Center Changes Hands for a Song The New York Times ISSN 0362 4331 Retrieved September 30 2020 Grant Peter Gasparino Charles October 9 2001 Lehman Brothers Plans to Move Headquarters Out of Wall Street The Wall Street Journal ISSN 0099 9660 Retrieved September 30 2020 Scalet Sarah D September 1 2002 IT Executives From Three Wall Street Companies Lehman Brothers Merrill Lynch and American Express Look Back on 9 11 and Take Stock of Where They Are Now CIO Retrieved September 30 2020 a b Morgenson Gretchen May 19 2012 Is Insider Trading Part of the Fabric The New York Times ISSN 0362 4331 Retrieved September 30 2020 a b Henriques Diana B June 17 2003 Lehman Aided in Loan Fraud Jury Says The New York Times ISSN 0362 4331 Retrieved July 21 2020 Scannell Kara Craig Susanne March 17 2010 SEC Tried to Ease Curbs The Wall Street Journal ISSN 0099 9660 Retrieved September 30 2020 Williams Mark April 12 2010 Uncontrolled Risk McGraw Hill Education p 129 ISBN 978 0071638296 McDonald Lawrence G Robinson Patrick October 12 2010 A Colossal Failure of Common Sense The Inside Story of the Collapse of Lehman Brothers Crown ISBN 978 0 307 58835 7 Mark Trumbull March 12 2010 Lehman Bros used accounting trick amid financial crisis and earlier The 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Brothers in freefall as hopes fade for new capital Archived from the original on April 21 2009 Retrieved February 15 2012 Dow plunges nearly 300 points on concern about Lehman Times Picayune New Orleans September 9 2008 Retrieved February 15 2012 Anderson Jenny September 9 2008 Wall Street s Fears on Lehman Bros Batter Markets The New York Times White Ben September 10 2008 Lehman Sees 3 9 billion Loss and Plans to Shed Assets The New York Times a b Bruno Joe Bel September 10 2008 Lehman shares slip on plans to auction off unit consider sale of company The Seattle Times Associated Press a b Anderson Jenny Sorkin Andrew Ross September 11 2008 As Pressure Builds Lehman Said to Be Looking for a Buyer The New York Times a b Fitzgerald Patrick September 9 2009 Fund Manager Wants 12 3 Million from Lehman The Wall Street Journal Statement of Richard S Fuld Jr before the United States House of Representatives Committee on Oversight and Government Reform PDF US House October 6 2008 Archived from the original PDF on September 16 2012 Retrieved February 15 2012 Smith Aaron October 6 2008 Fuld blames crisis of confidence CNNmoney Retrieved February 15 2012 Moore Heidi N October 7 2008 Dick Fuld s Vendetta Against Short Sellers and Goldman Sachs The Wall Street Journal Richard Fuld s Statement To The Congressional Committee In Full News hereisthecity com Archived from the original on January 21 2010 Retrieved October 16 2010 Taibbi Matt October 2009 Wall Street s Naked Swindle Rolling Stone Archived from the original on June 23 2018 Retrieved October 15 2009 Veljko Fotak Vikas Raman and Pradeep K Yadav May 22 2009 Naked Short Selling The Emperor s New Clothes PDF Centre for Financial Research University of Cologne Retrieved February 15 2012 a b Anderson Jenny Dash Eric Bajaj Vikas Andrews Edmund September 13 2008 U S Gives Banks Urgent Warning to Solve Crisis The New York Times White Ben Anderson Jenny September 14 2008 Lehman Heads Toward Brink as Barclays Ends Talks The New York 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Lehman failure AIG struggle drive financials lower MarketWatch AFP September 15 2008 afp google com Lehman bankruptcy shakes world financial system Archived from the original on March 5 2012 Retrieved October 16 2010 Grynbaum Michael September 15 2008 Wall St s Turmoil Sends Stocks Reeling The New York Times Lehman Bros files for bankruptcy BBC News September 15 2008 Lehman Bros files for Civil Reorganization Law Yomiuri Online September 16 2008 Archived from the original on September 16 2008 Retrieved September 16 2008 NYSE to Suspend Trading in Lehman Brothers Holdings Inc and Related Securities listed on NYSE and NYSE Arca Moves to Remove from the List Press release NYSE Euronext September 17 2008 Archived from the original on September 21 2008 Retrieved September 18 2008 Lehman targets November 17 to win bankruptcy plan OK Reuters March 16 2011 Archived from the original on September 24 2015 Retrieved July 1 2017 Greece lost a huge amount of money from deposits in Lehman Brothers 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for Lehman s Europe ops report Archived September 29 2008 at the Wayback Machine AFP September 25 2008 Nomura Buys Lehman s Europe Banking Equities Units Bloomberg September 23 2008 Lehman Brothers 2007 Annual Report Archived from the original on March 22 2008 Durchslag Adam October 1 2008 Bain and Hellman secure Neuberger private equity houses Bain Capital and Hellman amp Friedman acquire Neuberger Berman from Lehman for US 2 15bn Acquisitions Monthly from Access My Library Money cnn com Archived September 30 2008 at the Wayback Machine De Michael J December 3 2008 Managers Win Auction for a Part of Lehman The New York Times Examiner s Report Lehman Brothers Holdings Inc Chapter 11 Proceedings Lehmanreport jenner com Archived from the original on November 15 2011 Retrieved October 16 2010 Lehman file rocks Wall Street Financial Times Retrieved October 16 2010 Frean Alexandra March 13 2010 Linklaters and Ernst and Young face action over Lehman Brothers collapse The Times London Retrieved May 7 2010 Clark Andrew March 12 2010 Could Lehman s Dick Fuld end up behind bars The Guardian London Retrieved May 7 2010 Eaglesham Jean Rappaport Liz March 12 2011 Lehman Probe Stalls Chance of No Charges The Wall Street Journal Chellel Kit October 15 2011 Lehman Nortel lose 3 5B pension appeal Ottawacitizen com Archived from the original on February 7 2012 Retrieved November 2 2011 JPMorgan to pay 1 42 billion cash to settle most Lehman claims Reuters January 26 2017 Retrieved January 22 2017 Salomon Smith Barney from Gambee Robert Wall Street W W Norton amp Company 1999 p 73 a b Lehman on stage making a drama out of the financial crisis Financial Times June 29 2018 Retrieved June 22 2020 Corliss Richard July 9 2010 Despicable Me It s Pickable Time com TIME Magazine Retrieved August 25 2015 Phillips Ian July 17 2012 Martin Scorsese Adds Horrible Bosses Star P J Byrne To The Wolf of Wall Street The Film Stage Retrieved September 30 2020 a b c d e f g Lehman Brothers A Centennial Lehman Brothers 1850 1950 Spiral Press 1950 pages 62 63 Crittenden Ann December 20 1980 Lehman s Office Move Marks End of an Aura Lehman Leaves One William Street The Place Is a Pigsty High Return on Capital The New York Times Salmans Sandra October 19 1985 At Last Shearson Makes Its Move The New York Times Lehman Brothers to Remain in New York with Purchase of Morgan Stanley s New Office Tower Findarticles com October 8 2001 Archived from the original on June 7 2009 Retrieved October 16 2010 Further reading EditAuletta Ken Greed and Glory on Wall Street The Fall of the House of Lehman Random House 1985 Bernhard William L Birge June Rossbach Bingham Loeb John L Jr Lots of Lehmans The Family of Mayer Lehman of Lehman Brothers Remembered by His Descendants Center for Jewish History 2007 Birmingham Stephen Our Crowd The Great Jewish Families of New York Harper and Row 1967 Dillian Jared Street Freak Money and Madness at Lehman Brothers A Memoir New York Simon and Schuster September 13 2011 ISBN 978 1 4391 8126 3 Geisst Charles R The Last Partnerships McGraw Hill 1997 Shirkhedkar Jayant Saving Lehman One person at a time McGraw Hill 2007 Lehman Brothers A Centennial Lehman Brothers 1850 1950 Spiral Press 1950 Schack Justin May 2005 Restoring the House of Lehman Institutional Investor p 24 32 Wechsberg Joseph The Merchant Bankers Pocket Books 1968 Nocera Joe September 11 2009 Lehman Had to Die So Global Finance Could Live The New York Times Lawrence G McDonald 2009 A Colossal Failure of Common Sense The Inside Story of the Collapse of Lehman Brothers Crown Business Sorkin A Ross 2009 Too Big to Fail The Inside Story of How Wall Street and Washington Fought to Save the Financial System and Themselves Viking Adult Kane and Stollery 2013 Lessons learned an exchange of view Overton Winston 2013 Wall Street Scandals Greed and Trading on Wall Street the American Way Xlibris ISBN 978 1479772490 Kane and Stollery 2018 5 years on what have we learned an exchange of views External links Edit nbsp Wikimedia Commons has media related to Lehman Brothers Lehman Brothers at the Wayback Machine archive index Lehman Brothers Records at Baker Library Bloomberg Center Historical Collections Harvard Business School Lehman Brothers Archived January 22 2018 at the Wayback Machine Barclays Archives Lehman Brothers Hong Kong incorporated entities KPMG Hong Kong Lehman Brothers bankruptcy site linked to from Lehman Brothers home page The Lehman Brothers Treasure Trove slideshow by Life magazine Hart Davis Damon June 12 2013 What did the Lehman Brothers implosion look like to a techie The Register Onaran Yalman Christopher Scinta September 15 2008 Lehman Files Biggest Bankruptcy Case as Suitors Balk Update4 Bloomberg News Archived from the original on April 10 2012 Retrieved from https en wikipedia org w index php title Lehman Brothers amp oldid 1170111223, wikipedia, wiki, book, books, library,

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