Skip to main content

Lehman Brothers: In short

 

  • Lehman Brothers began in the mid-19th century – 1844, to be precise – as a general store. Henry Lehman was responsible for the first incarnation of the business; his brothers (Mayer and Emanuel) joined the business in 1850, laying the groundwork for what would become a financial industry powerhouse.
  • The 1990s were a time of great power and financial success for Lehman Brothers; the repeal of the Glass-Steagall Act allowed the company to engage in both commercial and investment banking services, a move that would ultimately lead to its downfall.
  • Lehman’s ultimate end came as a result of being utterly overwhelmed by mortgage-backed securities (MBS) that were mostly backed with subprime loans, many of which went into default.

 

Comments

Post a Comment

Thanks for reading!

Popular posts from this blog

The Rise and Fall of LEHMAN BROTHERS

Lehman Brothers’ stock was selling at $86 a share in February 2007, giving the company a market capitalisation of nearly $60 billion. For the year, the company reported a new record high in net income, over $4 billion. In January 2008, Lehman Brothers was the fourth-largest investment bank in the U.S. In March, immediately after Bear Stearns (the second largest holder of mortgage backed securities, right after Lehman Brothers) almost collapsed, Lehman stock dropped by almost 50%. In June, the company reported a quarterly loss of $2.8 billion, its first quarterly loss since being spun off from American Express way back in 1994. By the end of 2008, Lehman Brothers Holdings Inc. had vanished from the investment banking landscape, the largest corporate bankruptcy filing (with $619  billion  in debt) in U.S. history.   The Beginnings of Lehman Brothers            Source: HBS Lehman Brothers was founded in the year 1844. It was started in Montgomery, Alaba
Post a Comment
Read more

Progress in Public Health

Progress in Public Health has been quite challenging, owing to terrible disasters.... both natural and those initiated by man. The loss to life and property has been tremendous. Ex- Bombing at a graduation ceremony at a Medical College, in Mogadishu has been ranked as the most devastating loss of human life in recent history. Natural disasters such as earthquakes, famines, floods, landslides, etc, have also led to serious destruction to life and property.* The problems that generally arise after a disaster lead to diseases associated with poor water supply and sanitation. At times health centres too are damaged and erratic delivery of medicines and care lead to further problems. The W.H.O. in the past and present facade has made immense progress in the nature of dealing with emergencies in public health during disasters. They aim at: 1) Assessing the nature and magnitude of the disaster 2) To treat the injured 3) To recover bodies 4) To set-up surveillance for infectious diseases 5) Pr
2 comments
Read more

The Constitution of India

India is a 'Union of states' and is a sovereign, socialist, secular and democratic republic, having a parliamentary type of government. The Indian Constitution is considered as the absolute law of our country, on the basis of which our country is ruled.     We all know that India got freedom from the British on 15th August, 1947. After independence, the first and foremost thing to be done was to create it's own Constitution. In order to create the constitution, a legislative body was formed that contained the people's elected representatives and was named as the 'Constituent Assembly'. A sub-committee was set up for drafting the constitution called the 'Drafting Committee'. Dr. B.R. Ambedkar was the chairman of this committee. He studied approximately 60 nations before drafting the Indian Constitution. That is why he is called the 'Father of Indian Constitution'.     The Indian Constitution has 448 articles, 103 amendments and 12 sche
Post a Comment
Read more