Lehman Brothers

Lehman Brothers On September 10, 2008, Lehman Brothers announced the least decline and the stock price fell to 45%. Even after the Korea Development Bank refuses to conclude an investment agreement to rescue Lehman Brothers, its market price is $ 5.4 billion. The company seeks to raise funds from other investors to restore its financial condition. Even after the US government rescued Bear Stearns, Fannie Mae and Freddie Mac, these efforts remained stagnant and the situation became more serious.

In 2008, Lehman Brothers went bankrupt. Lehman Brothers' bankruptcy declaration is the largest in history, with assets of $ 639 billion and debt of $ 61.9 billion. Due to the availability of Lehman Brothers' transaction records, regulators can use intelligent data mining and machine learning tools to track transaction activity anomalies and differences in counterparty risk, widening credit spreads and short-term funding activities You can identify confusion. The capital market will decide early on the decline of Lehman's reputation and will reevaluate Lehman Brothers' CDS risk and therefore will play a natural role in Lehman's business expansion. Increase incentives by other companies such as Bear Stearns, Merrill Lynch, Citibank and others to lower CDS to raise borrowing costs, thereby increasing borrowing costs, ie by promoting profitability and creating shareholder wealth To do.

The bloody incident in Wall Street lasted three years, and Lehman Brothers has already left. On September 15, 2008, Lehman Brothers Holdings, the fourth largest investment bank, shocked the world market and weakened the fate of billionaire financial institutions. Lehman Brothers Holdings is a 158 year old bank with a revenue of approximately $ 60 billion in fiscal year ending November 30, 2007 with a record revenue in excess of $ 4 billion. In January 2008, Lehman Brothers' stock price was $ 65.73 per share, trading in mid-50s average. This means that the market price will exceed $ 30 billion.

The bankruptcy of Lehman Brothers is the result of investment banks facing the financial crisis of 2007-2010. In fact, the collapse of investment banks will be a symbol of the crisis. Therefore, in order to understand the bankruptcy of Lehman Brothers, it is necessary to deepen the understanding of the financial crisis from 2007 to 2010. Therefore, consideration of crisis will be introduced. It can be said that the timing of deregulation began in the Reagan era. Reaganomics is the Latinis fair economic policy advocated by former President and may be the starting point for the deregulated climate that will follow the next 20 years. In any case, the next 20 years I have witnessed the most important beliefs of virtue of deregulation.