Research Paper on "Lehman Brothers Will Remain"

Research Paper 5 pages (1409 words) Sources: 1+

[EXCERPT] . . . .

was thus created as a result of an IPO.

Richard Fuld was the company's CEO from the sale of Lehman Brothers by American Express to the company's bankruptcy in 2008. His performance at the company is mixed and, likely, still dominated by the eventual failure of Lehman Brothers. The company performed reasonably well during the 1990s, in a challenging period that included the Asian Financial Crisis. However, the company's share price was not at the highest levels during this period of time and Lehman's exposure to the housing market, through its mortgage bond underwriting business, eventually brought the company's failure. Altogether, revenues did grow significantly during his tenure, as well as the number of employees working for the company.

The moment of the bankruptcy is worth a supplementary discussion. There are several reported causes, primarily the exposure to subprime mortgage, characterized, at the time, by extreme volatility. As always in these cases, investor confidence gradually decreased, leading to a negative impact on the company's stock price. Some sources also mentioned that the company routinely employed different shady accounting practices in order to minimize the real spectrum of the situation Lehman Brothers was in .

With Lehman Brothers filing for bankruptcy in September 2008, there were several actions that were undertaken in order to deal with the creditors and existing debt. Some of the company was sold, Barclay's purchasing most of Lehman's operations in North America. Nomura Holdings, a Japanese brokerage company, purchasing the Asian portion of the company. Some of the debt was restructured. However, the government did not intervene in any way, pointing out that public money will not be used to bail out Lehman Brothers. This remained a controversial move: the company subsequently did intervene to save other companies, including big banks. The question remained why Lehman Brothers was signaled out as an entity that would not be saved by governmental money.

As a consequence, this last paragraph also shows the future for Lehman Brothers. Lehman Brothers no longer exists as an entity. It was split up into different parts and sold off to different buyers. The revenues thus obtained were then used to cover some of its huge debt, while other parts were restructured. The former Lehman Brothers was integrated, as separate components, into the new companies that acquired it.

Lehman Brothers had a complex and diversified portfolio of products and services in the financial sector. It operated as an investment bank and a trading company and a large part of the company's portfolio of services included raising capital for different IPOs. Another part of its services were made up of consulting services: Lehman Brothers acted as an advisory firm, presenting different investment options for its clients. This was part of the larger part of investment management services that Lehman Brothers provided for its customers. It also operated in a variety of financial markets, primarily through trading, such as commodities and foreign currencies. Private equity investments and securities sales and trading were also services that Lehman Brothers offered. Lehman Brothers did not offer any products of its own.

Lehman Brothers represented one of the most important financial entities in the United States over the last 150 years. As an investment bank and a consulting firm, it helped develop the stock exchange and contributed to the development of the financial sector. However, its overexposure and other problems brought its demise.

Bibliography

1. Mamudi, Sam. Lehman folds with record $613 billion debt. The Wall Street Journal. September 2008. On the Internet at http://www.marketwatch.com/story/lehman-folds-with-record-613-billion-debt?siteid=rss. Last retrieved on December 13, 2013

2. Wechsberg, Joseph. The Merchant Bankers. Pocket Books, 1966,

3. Geisst, Charles R. The Last Partnerships. McGraw-Hill, 1997

4. Mark Trumbull. Lehman Bros. used accounting trick amid financial crisis -- and earlier." The Christian Science Monitor. March 12, 2010. On the Internet at http://www.csmonitor.com/USA/2010/0312/Lehman-Bros.-used-accounting-trick-amid-financial-crisis-and-earlier. Last retrieved on December 13, 2013

Mamudi, Sam. Lehman folds with record $613 billion debt. The Wall Street Journal. September 2008. On the Internet at http://www.marketwatch.com/story/lehman-folds-with-record-613-billion-debt?siteid=rss. Last retrieved on December 13, 2013

Wechsberg, Joseph. The Merchant Bankers. Pocket Books, 1966,

Geisst, Charles R. The Last Partnerships. McGraw-Hill, 1997

Mark Trumbull. Lehman Bros. used accounting trick amid financial crisis -- and earlier." The Christian Science Monitor. March 12, 2010.… READ MORE

How to Reference "Lehman Brothers Will Remain" Research Paper in a Bibliography

Related Research Papers:

Case That Needs to Apply GAAP Essay

Accounting/Finance

Repo 105 and Lehman Brothers

Banks utilize the repo market all the time in their daily business. It is essentially a manner in which they borrow capital from large… read more

Essay 3 pages (1057 words) Sources: 3 Topic: Accounting / Auditing

---

International Finance in Japan Thesis

International Finance in Japan

This work will provide a detailed discussion of the various ways the recent financial crisis in the United States and the ongoing U.S. recession in theory… read more

Thesis 9 pages (2608 words) Sources: 15 Style: APA Topic: Economics / Finance / Banking

---

Contrarian Investment Strategies Thesis

Contrarian Investment Strategies

Over the last several decades a number of different investment strategies have evolved. All of them were designed to help investors be able to successfully time the… read more

Thesis 73 pages (26080 words) Sources: 60 Topic: Economics / Finance / Banking

---

Demand Macroeconomics 'It's an Ill Wind Research Proposal

DEMAND

macroeconomics 'It's an ill wind that blows no one good' -- sustained or increased demand during an economic downturn. Who is unaffected by or benefits from an economic recession?… read more

Research Proposal 7 pages (2506 words) Sources: 7 Style: MLA Topic: Economics / Finance / Banking

---

Moral and Ethical Theory and Responsibilities of Business or Political Appointees Serving in Public Service Research Proposal

Decision-making is one of the fundamental keys to the survival of an organization, more so now that economic boundaries between countries crumble, business becomes more complex, and the results of… read more

Research Proposal 17 pages (4930 words) Sources: 30 Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>