Financial Crisis And The Collapse Of The Lehman Brothers

It is almost mandatory that every company, institution, firm, organization, business or enterprise – small or huge – has to undergo a financial crisis. Once in a while, it must find it hard to balance its books of accounts. If the situation gets severe, then the organization may even close down. This paper will give a detailed review of one institution -The Lehman Brothers - whose financial crisis led to its fall (Wong Smith, 2010). It will examine the beginning, the end, and the outcomes of the same. In addition to that, the report will also analyze the government policies that relate to the fall of the Lehman Brothers. In details, this paper covers the reasons for the crisis, the impact of the crisis on financial markets and institutions, the impact on the global economy, the response to the financial crisis (the bailout plan and the effect of it on capital markets), as well as the aftermath of the crisis that cause the collapse of this Company. In a way, this paper connects the knowledge I gain from the classroom to the current financial situation, to apply the concepts that I learn in this class, and to better understand the financial system in the United States. Rationale The goal is to study, analyze and report findings of the recent Financial crisis†, and since the Collapse of Lehman Brothers is one of such is, it suits this context. At the same time, it is one of the enlisted topics that the professor asked the class to consider in handling this assignment,Show MoreRelatedThe Collapse Of The Lehman Brothers1638 Words   |  7 PagesThe global financial crisis of 2008 that reeked havoc on most of the financial institutions had them fall into liquidation and bankruptcy. One of the most popular and most debated incident was the failure of the Lehman Brothers. The Lehman Brothers were a leading US investment bank that was worth $600 billion (D’Arcy). 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