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.
Excessive short-termism is always a problem for policy, but the Global Crisis has brought it sharply into focus. This column introduces a report that discusses how a shift to longer-term solutions is necessary and possible. A key message is that businesses as well as governments need to take a longer-term view. The report identifies ways to overcome the current impasse in key economic, climate, trade, security, and other negotiations.
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
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.