In 2008, Lehman Brothers Holdings Inc. was ranked #97 in Forbes Global 2000 list. But due to US subprime crisis, Lehman Brothers Holdings went bankrupt, and it was only a matter of time before this firm’s business divisions got sold off. Lehman Brother’s headquarters was located in New York, United States of America. A multi-national firm, Lehman Brothers Holdings Inc. offered financial products and services.
Brief history Lehman Brothers Holdings was founded in Montgomery, Alabama in United States of America in 1850. This firm was established by Henry Lehman and he was later joined by his siblings, Emanuel Lehman and Mayer Lehman. Initially, Lehman Brothers conducted a dry-goods store business. This was followed by a business interest in raw cotton trading. It was in 1855 that this firm began to focus their operations on commodities-trading or brokerage business. To counter adverse effects of Great Depression, Lehman Brothers' focus shifted to venture capital.
Products and services Lehman Brothers was known to offer popular products and services in verticals such as financial services, investment banking, and investment management.
Financials In 2007, total assets held by Lehman Brothers Holdings Inc. were worth about $22.490 billion. This firm generated revenues of about $59.003 billion. Operating income of Lehman Brothers Holdings was around $6.013 billion and net income was about $6.7 billion. As of September 15, 2008, market capitalization of Lehman Brothers Holdings was worth nearly $130 million.
Awards and recognition In 2008, BusinessWeek identified Lehman Brothers Holdings as one of “50 Best-Performing Companies”. Conceive magazine also included this firm in its list of “50 Best Companies”. In 2008, “The Asset” gave “Best Credit Derivatives House in Asia” award to Lehman Brothers. “The Banker” also bestowed upon this firm two awards for “Deals of the Year 2008”.
Current financial crisis US subprme mortgage crisis led to eventual declaration of Lehman Brother’s bankruptcy status. This firm had huge financial interests in US subprime market and had to face incredible losses owing to subprime crisis. In second fiscal quarter of 2008, Lehman Brothers suffered losses of around $2.8 billion and were forced to sell off assets worth $6 billion.
On 11 September, 2008 Lehman Brother filed for bankruptcy. Following declaration of bankruptcy, Barclays Plc delcared its intention clear to buy Lehman Borthers’ investment banking division. Later, Nomura Holdings also announced its intention to buy Lehman Brothers’ Asia-Pacific franchise.
Curbing corporate misbehaviour is a key policy goal but fixing the problem requires an understanding of what causes it. This column develops an innovative empirical approach that identifies unethical CEOs as an important cause of unethical corporation behaviour.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
QFINANCE is a unique collaboration of more than 300 of the world’s leading practitioners and visionaries in finance and financial management, covering key aspects of finance including risk and cash-flow management, operations, macro issues, regulation, auditing, and raising capital.
Vice President and Director of the Global Economy and Development Program at the Brookings Institution. Former Turkish Minister of State for Economic Affairs. Head of the United Nations Development Program (UNDP) from 2005-2009.
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific
James W. Harpel Professor of Capital Formation and Growth at the John F. Kennedy School of Government in Harvard University. Director of Program in International Finance and Macroeconomics at the National Bureau of Economic Research.