Lehman brothers case essay

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1 . Introduction

Lehman Brothers Holdings Inc., the fourth largest US investment bank, succumbed to the subprime mortgage loan crisis inside the biggest individual bankruptcy filing in history. The 158-year-old firm, which usually survived railroad bankruptcies of the 1800s, the fantastic depression inside the 1930s, & the collapse of long-term capital management a decade ago, filed for chapter 11 personal bankruptcy on the fifteenth of September 2008. installment payments on your Impact with the crisis: how it led to the failure of Lehman Brothers In this segment, all of us will assessment the media stories masking Lehman Siblings during the problems and present the impact of the crisis upon Lehman Brothers in the form of a timeline, right till the eventual personal bankruptcy.

2008

In 2008, Lehman encountered a loss for the first time since going public as the subprime mortgage crisis unfolded. Lehman’s damage was ostensibly a result of having held onto large positions in subprime and other lower-rated securitized mortgage loan tranches. Inside the first 50 % of 2008 only, Lehman share lost 73% of it is value. Particularly, in the second quarter of the financial season 2008, Lehman reported stupendous losses of.

8 billion. As a result, it had to sell away $6 billion dollars in property in order to fulfill its financial debt obligations. one particular In August 2008, Lehman announced that it would pain relief 6% of its work force. We look how things unraveled in the couple of days prior to their collapsed.

tenth September 2008

Lehman unveiled bleak third-quarter results and drew attention to the frailty of its financial position. That reported a loss of $3. 9 billion dollars that included a write-down of $5. 6 billion dollars. 2 In order to raise very much neededcapital, Lehman Brothers had to sell off its advantage management part, Neuberger Berman. That same day, Moody’s Investor Services reported it turned out re-assessing Lehman Brother’s credit scores and also declared Lehman Friends would need to offer a majority risk to a ideal partner to prevent a evaluations downgrade. As a result, Chief executive Dick Fuld frantically searched for customers with ideas to sell off assets3. At the same time, investors had been nervous about whether the ALL OF US government will bail Lehman out because the government got previously bailed out significant lenders Fannie Mae and Freddie Apple pc.

11th September 2008

The state-controlled Korea Development Financial institution who was accompanied by acquiring Lehman Brothers, withdrew due to “difficulties pleasing regulators and appealing to partners to get the deal. 4 The news was obviously a deathblow to Lehman Brothers and brought on a 45% plunge in its stock and a 66% spike in credit-default trades on Lehman’s debt. five The company’s hedge fund clients began to get, while its initial creditors lower credit lines. The frantic look for buyers increased doubts over the bank’s survival and its stocks plunged 42 percent to $4. 44.

12th September 2008

Barclays announced that it was considering bidding process for Lehman in an attempt to strengthen it existence in The united states. Despite the evident interest, Lehman shares decreased 13. 5%. The US government commenced talks with Wall Street bankers to come up with a solution on methods to rescue Lehman Brothers. Tim Geithner, the New You are able to Federal Program Reserve (FRS) president, suggested ‘good traditional bank, bad bank’ solution. 6th This would enable buyers to take on Lehman Brother’s good assets, with Stock market stumping up to cover for their US$80billion of toxic debts.

14th September 2008

Over 100 top Wall Street bankers along with government bodies and the ALL OF US Treasury officials spent the weekend inside the Federal Nyc building discovering options. After its US$229 billion in bailouts for Bear Stearns, and Fannie Mae and Freddie Mac pc, the US Treasury was reluctant to part with more taxpayer money.

15th September 08

Wall Street as well as the US Treasury were unable to create a solution andLehman Brothers was left to fend intended for itself. This eventually submitted for chapter 11, individual bankruptcy. With US$639 billion in assets and US$613 billion in financial obligations, it is the most significant US company bankruptcy. It had been also the first key bank to break down since the credit rating crisis began a year previous. Lehman provides and financial loans that were trading at 80 cents to 90 pennies in the dollars the week before were now really worth little more than 40 mere cents. 7 Regarding $70 billion of Lehman Brother’s debts held by other institutions was erased and slots of that financial debt faced huge potential deficits.

After individual bankruptcy

As of September 2012, Lehman emerged via bankruptcy, and now looks just like a normal investment bank. The only difference is the fact Lehman’s singular objective is always to sell anything it owns so that it can repay its lenders and disappear. almost eight We is going to move on to explore the causes that led to the collapse of Lehman Friends. 3. Reasons for the problems experienced by Lehman Brothers in the crisis The key cause of the 2008 economic crisis was the growth of the housing business in 2005 fuelled by simply low interest rate and easy loans. During this time, Lehman Brothers received mortgage lenders and subprime lenders BNC Home loan and Amanecer Loan Solutions. Its property business part recorded revenues in the capital markets that increased simply by 56% inside the period coming from 2004 to 2006. In 2007, the housing market begins to show signs of slowing down with defaults inside the subprime home loans at a seven season high. While most financial institutions were affected, Lehman Brothers was majorly exposed in the financial disaster. In the next segment, we determine the fundamental causes of the down sides faced by Lehman during the crisis.

3. 1 Over-concentration in the mortgage loan market

Over-concentration in the home loan market was one of the primary reasons that resulted in the fall of the Lehman Siblings. From 2006 till mid-2007, Lehman strongly expanded in commercial real-estate, private equity and leveraged financing using its individual capital (Latifi, 2009). In 2007, it underwrote much more mortgage-backed securities and built up a portfolio of $85 billion that was four times bigger than its shareholders’ equity. Even when it recognized the risk in the mortgage marketplace, rather than pulling back, Lehman doubled it is holdings in illiquid assets from $87 billion 5 years ago to $175 billion at the conclusion of the initial quarter of 2008, hoping to profit from a countercyclical technique (Saurav E. Dutta, 2010). This over-concentration in the home loan market made it especially prone and sensitive to a demise in real estate price. When the housing rates fell, to get the initially half of 08 alone, Lehman stocks shed 73% of its worth. (Sourcewatch, 2012)

3. 2 High influence

Overly substantial financial leveraging was one more cause that led to the demise of Lehman Friends. Leverage is the ratio of total property to shareholders equity. In Lehman Brother’s case, focus was not paid out to their risk management. As the maximum leverage for Stock market broker-dealers occured to be twenty to 1, Lehman Brother’s leverage ratio elevated from twenty four in the year 2003 to thirty-one in 2008. To make subject worse, Lehman Brother counted heavily on short-term debt financing (Robyn Alman, 2009), which designed Lehman was under stupendous amount of insolvency risk should immediate lenders minimize credit lines. While the financial crisis unfolded, borrowers began dropping confidence and called backside the loans they provided Lehman. Because Lehman was highly leveraged, they did not have the cash to pay back the financial loans and had to resort to providing off their assets. Because majority of Lehman’s assets had been illiquid, this led to fire-sale risk and liquidity complications for Lehman (Saurav K. Dutta, 2010).

3. 3 Overvaluing Collateralized Debt Obligations9 (CDOs)

The over-valuation of CDOs added to liquidity challenges at Lehman Brothers in 2007 in addition to 2008 and punched a hole in Lehman’s balance sheet during the turmoil. This over-valuation was caused by three factors. Firstly, the “product control group, one of Lehman whose task was to double-check valuation of assets placed by trading desk, weren’t getting the resources to comprehensively price test the CDO positions. The employees from the unit weren’t getting the quantitative knowledge that the traders got and deferred to the traders’ model the moment valuing the assets. Subsequently, third-party prices were accustomed to evaluate Lehman’s positions on only 10% of the CDO portfolio and did not offer an accurate measure of the CDO’s value. Finally, Lehman Friends was applying inaccurate discount rates to worth projects.

About its largest CDO placement, a product named Ceago, Lehman used a lesser discount rate for the riskier subordinate tranches than it did on the mature tranches, which is exactly contrary to just how it should be since senior tranches are considered safersecurities. It was reported that believed prices for several tranches will be approximately onethirtieth of the value reported by Lehman that indicated a gross overvaluation in Lehman’s part. (Carney, 2010) As the financial crisis unfolded with increased non-payments on subprime mortgage, CDO positions had been massively crafted down because of overvaluation. Shareholders became anxious about their experience of such resources and ceased investing in Lehman Brother’s business papers (Latifi). Withdrawal with their funds adversely impacted Lehman Brothers, when it was unable to rotate over or renew their very own commercial papers that generated liquidity complications and eventually financial distress.

3. 5 Fraud: Treatment of accounting statements

One more that resulted in the downfall of Lehman Brother was your manipulation of its accounting statements to temporarily take away up to 50 dollars billion of assets from the balance sheet to be able to deceive the general public about it is true fluidity condition (Adam, 2010). Lehman made use of Repo 10510 to lessen its liabilities. Repo a hundred and five is a great accounting move around where a initial loan is usually classified as being a sale. 11The cash attained is then used to pay the company’s liabilities consequently reducing its financial influence such that it could reflect a normal liquidity condition on the published “balance sheet” (Agatha, 2011). Shareholders had been concerned with the financial influence of the firm since a better debt level would mean greater risk to all of them. Lehman did not adequately deal with this and took about risky investments and activities.

It resorted to Repo 105 so that they can hide their unhealthy finances (Pranvera, 2010). Repo one zero five transactions generally increased right before the quarterly reporting period so as to indicate a great state of its financial situation with a healthy leverage (Agatha, 2011). Lehman’s failure to disclose information regarding the Repo a hundred and five transactions to significantly reduce its leverage, created a deceiving portrayal of its the case financial health. With this, Lehman Brother deceived the population about their authentic liquidity condition, and committed a major fraudulence eventually resulting in their individual bankruptcy. However , this kind of bankruptcy could have been prevented if perhaps Lehman Brother’s external auditor Ernst & Young acquired raised concern about the application of Repo a hundred and five.

3. a few Certified public accountants (CPAs)

Ernst & Young (E&Y) had allegedly failed to problem and problem improperor not enough disclosure in Lehman Brother’s financial statements. Even though E&Y insisted that the financial assertions were provided in accordance with the commonly Accepted Accounting Principles, the reduction of 0. 9 in the gearing ratio12 to get the second one fourth of 08 was drastically material plus the audit company should have recently been alarmed by excessive utilization of Repo one zero five (Steve, C). In fact , there were claims that E&Y just approved the accounting treatment applied to the transactions and did not consider their total impact on the financial claims, and the actual reason why it had been used (Karen, 2010). The possible lack of consideration intended for the substantialness and examination of any Repo 105 purchase did not seem to meet the specialist standards that auditors conform. E&Y’s inactivité allowed Lehman Brothers to continuously embark on manipulation of its accounting statement that contributed to the downfall.

three or more. 6 Credit scoring of mortgage-backed securities

One of the reasons which triggered Lehman Brothers’ failure was its substantial investments in subprime mortgage-backed securities rated as well highly by simply rating firms like Moody’s, Standard and Poor and Fitch. The credit rating companies inflated the credit worthiness with the subprime market and elegant the risk involved in thousands of subprime mortgages plus the companies holding the debt for people (Amanda, 2010). They played a key role in resulting in the dire industry conditions by simply underestimating the complexity of the financial tools in the market. Lots of the subprime mortgages were graded Aaa and Aa1 rankings (Moody’s gold standard) prior to they folded away due to many defaults and this adversely afflicted the companies that had invested in them (Kevin, 2010). Lehman was one of these. In fact , the complete financial market that acquired counted around the accuracy of the credit ratings was affected with the investments in these kinds of subprime mortgages.

3. six Government Rules

The Asset Futures Modernization Act of 2000 released deregulation of over-the-counter derivatives that just visited the center of the 08 financial crisis. That prohibited the Securities and Exchange Commission rate (SEC) and the Commodities Options contracts Trading Commission (CFTC) from regulating derivatives trading with this legislation (Lynn, 2009). SECURITIES AND EXCHANGE COMMISSION’S was simply allowed limitedoversight of trades and in any other case relied upon industry self-regulation. In particular, Lehman was a counterparty to or guarantor of over 930, 000 OVER-THE-COUNTER derivatives plus the lack of legislation eventually led to their lack of ability to honour their derivative obligations that contributed to their very own insolvency (Monetary Authority of Singapore, 2012).

3. almost 8 Bad Business Governance

The organization structure was one of the reason Lehman Friends failed. Lehman Board of Directors was made up of many members who also did not have past monetary markets expertise. CEO Rich Fuld decided all industry’s risk management, strategies, goals and objectives. The Board of Directors was highly useless, as they would not have control of the company. The chairman of the board plus the head of risk panel was the two Richard Fuld and this will lead to inherent self-interest risk and self-reliance risk which caused the delay in recognizing the mortgage problems as Rich Fuld autocratic rule did not take into account additional inputs.

Furthermore, due to its autocratic corporate composition, there was deficiencies in communication and common understanding in the business where alerts from talented researchers and managing company directors regarding the substantial risks below mortgage orders were dismissed and ignored (Robyn Alman, 2009). As such, management was too slow to identify Lehman’s ought to raise capital and shed bad property that eventually led to liquidity problems. Having determined the underlying factors behind problems experienced by Lehman Brother, we all will explore possible procedures that could have been completely taken to prevent these challenges.

4 Check out how the problems may be averted

The study of background the eventual collapse of Lehman Siblings will help all of us learn the errors made by all of them and the steps we could took to avoid the down sides.

Moral threat

More accountability could have been added to management to its shareholders in order to reduce the issue of ethical hazard. The idea of equity pay structure for employees is always to make every single employee seem like an owner of the firm and for each employee to act responsibly within their decisions as their income will be tied up with the long-term benefit of the firm. Instead, system of risk and reward proportion backfired in the LehmanBrothers case. The equity pay structure experienced in fact presented a strong incentive for employees to recklessly carry out higher leverages and go after high income. Therefore , companies should control the risk to reward percentage in the fairness pay structure for employees. Companies ought to continue to prize employees with equities, yet perhaps the percentage of equities rewarded regarding their functionality should be lowered.

Diversification

The subprime mortgage crisis arrived at the time the moment Lehman Friends had a big stake in it, having a large area of its purchases of the subprime mortgage industry. From the meaning of subprime home loan it explains how high-risk such purchase is. Hence, while keeping such high-risk assets may reap supernormal returns throughout the boom from the housing market, it may result in drastic losses if the housing market underperforms. Figure a few illustrates that in 2006 Lehman Brother was the largest expert for securities, worth above $51. almost 8 billion and by September 3 years ago, 20% from the subprime financial loans were in default. On the rise of this crisis, Lehman Brothers built a lack of US$2. almost eight billion inside the 2nd one fourth of the 08 financial season. This damage could have been counter if they had varied their portfolio.

Less innovation

Source: http://angryfutureexpat.wordpress.com/

Marketers think that financial advancement, for the sake of producing something new, at times doesn’t maximize value, but instead winds up destroying value. Here, we are referring to the relatively new monetary securities in the middle of the turmoil. Namely, credit rating default swaps (CDS), Mortgage backed securities (MBS), Collateralized Debt Commitments and type of derivatives (CDO2). Rather than selling corporate or federal government bonds, equities and other financial instruments that customers could readily figure out, Lehman Brothers brought to the marketplace complex financial products to hedge funds, pension funds, and institutional buyers that often got higher margins. Looking at the chart above, many of these derivatives sold by simply Lehman Friends and other investment banks had been so sophisticated in nature which could include only recently been valued and priced by learned persons.

Regulators and traders typically didn’t figure out derivatives, and what the underlyingassets really are. In cases like this, subprime loans. Therefore , without this innovative packaging of economic securities, dealers and regulators would have better understood the underlying risks that they are choosing. It would just be easier to enable them to identify that the actual have on hand are high-risk subprime loans. This way, the warning signs could have been detected previously when house owners started defaulting, causing banks to stop purchasing home loans, and the crisis could have been avoided.

Regular Overview of the Ratings by Credit score Agencies

Sprinzen and Azarchs (2008) defended that Common and Poor’s (S&P) the high credit score of A+ for Lehman Brothers. That they explained the valuation of your company was based on traditional performance from the company and as long as the rankings continued to reflect the prevailing marketplace sentiment. An assessment the ranking would be carried out only if there is also a change in the marketplace sentiment. Therefore, Credit Rating Agencies such as A.M BEST should continually monitor the creditworthiness from the company and regularly re-rate the companies.

Bureaucratic oversight & accounting standards

Claims by all over recommended that a good system to monitor activities of its executive committee should have been put in place. This might have engaged critical auditing of the literature of accounts to assess the real position in the firm. For example, a report by the court designated examiner performed indicate that Lehman management regularly applied Repo 105 at the end of each and every quarter since cosmetic accounting gimmicks to generate its funds appear fewer shaky than they actually were. These kinds of misleading information could have been unveiled if a good system to account for re-purchase transactions had been put in place. Consequently, Lehman Brothers could be pushed to reduce influence in order to meet up with market anticipations and avoid a ratings limit. Thus, the International Accounting Standards Panel (IASB), Financial Accounting Requirements Board (FASB) and elderly bodies responsible for setting accounting standards, fulfilled in April 2010 to review the accounting treatment for such repo transactions.

Tensing of rules & Polices

One of the reasons why Lehman Siblings fell and so quickly was due to its large use of power to fund its investments in the housing business.

Source: goldnews. bullionvault. com

In the years leading up to the crisis, mentioning the graph on the left, Lehman brothers were increasing their particular leverage in an attempt to capitalize on the housing market that has been perceived to become booming. All around its fall, it had a leverage of 31 to at least one, much higher than any other financial institutions. In those days, there were simply no specific polices to prevent Lehman Brothers coming from doing so. Basically, most of the investments experienced little funds to back them up. Referring to the bar graph around the right, the quantity of troubled assets it placed were more than double it is tangible fairness. When the home loan backed investments started defaulting, the bank located that it was unable to handle the losses and if they had a lesser leverage.

Rules could have been imposed on banking institutions to set a maximum power ratio that they can can use, one example is 25 to at least one. This will equip banks with an increase of cash to back all their investments as well as time to cope with the problem. In case of defaults and losses, the excess cash will allow banks to invest in other sources of income that might still be guaranteeing. In a way, the regulation will prevent banking companies from acquiring too much risk and allow them more time to manage bad conditions and rebound from them.

Federal government Intervention

When Lehman Siblings went under, it stopped paying in its commercial paper, persons and corporate treasurers alike raced to pull away their money from money market funds around. The cash, in turn, scrambled for cash and had taken back what money they will could by banks on both equally sides of the Ocean, freezing up lending just about everywhere. This caused great effects in the monetary world. A large number of officials to this day argue that as a result of lack of legal authority and funds, they’d no choice but to let Lehman fail. Others argue that policymakers would have found an even more creative method, had they will wanted to. “In that sort of emergency, that they could have discovered a way,  say Douglas Elliott, a former investment bank. 13 (Francis, 2009)

Destruction of the failure on the complete economy was so good that many wonder if the damage might have been lower had the us government intervened with bailouts and aids. Regardless if rescuing Lehman Brothers had not been possible, letting them fall little by little would have presented the world time for you to adjustrather than plunging straight into a full taken crisis. The true effects are never known, nevertheless we believe the federal government could have implemented better procedures to deal with the situation.

Shadow financial system

Darkness banks usually do not take deposits, thus they are subject to significantly less regulation than traditional banks. They can for that reason increase the advantages they comes from investments simply by leveraging up much more than their mainstream counterparts and this can lead to dangers mounting in the financial system. In Lehman Brothers case, they will conducted many of their transactions in ways that do not show up on their typical balance sheet accounting and so are not visible to regulators or unsophisticated trader. Thus, not regulated shadow establishments can be used to circumvent the purely regulated mainstream banking system and avoid rules designed to prevent financial crises.

As such, various provisions can go towards controlling the darkness banking program such as the implementation of tight credit and higher capital requirements. In 2010, the Dodd-Frank Act handed stipulates that the Federal Book System could have the power to manage all institutions of systemic importance including shadow banks. Through these types of regulations, there is greater visibility and requirements in the darkness banking system that could include prevented the bankruptcy of Lehman Siblings.

Bibliography

Robyn Alman, R. C. (n. g. ). Lehman Brothers: A workout in Risk Mismanagement. Retrieved 2013 йил 1-April from New Britain College of Business and Finance: http://www.necb.edu/resource_lehman-brothers-an-exercise-in-risk-management.cfm Latifi, P. (n. m. ). Lehman Brothers’ rise and show up: From hero to dust particles. Retrieved 2013 йил 1-April from lcbr-online. com: http://www.lcbr-online.com/index_files/proceedingssym12/12sym13.pdf Saurav E. Dutta, G. C. (2010 йил August). Lehman’s Covering Game Poor Risk Management. Retrieved 2013 йил 1-April by imanet. org: http://www.imanet.org/PDFs/Public/SF/2010_08/8lawson.pdf sourcewatch. (2012 йил 20-June). Lehman Brothers. Gathered 2013 йил 1-April from Sourcewatch: http://www.sourcewatch.org/index.php?title=Lehman_Brothers Carney, M. (2010 йил 17-March). Lehman Brothers Was Dramatically More than Valuing The CDOs.

Retrieved 2013 йил 28-March from Business Insider Clusterstock: http://articles.businessinsider.com/2010-03-17/wall_street/30061008_1_lehman-brother-lehman-report-valuations Investopedia. (n. m. ). Collateralized Debt Requirement ” CDO. Retrieved 2013 йил 28-March from Investopedia: http://www.investopedia.com/terms/c/cdo.asp Francis, T. (2009, September 13). Lehman’s Show up: The What-Ifs Linger. Retrieved April 22, 2013, via http://www.businessweek.com/: http://www.businessweek.com/stories/2009-09-13/lehmans-fall-the-what-ifs-lingerbusinessweek-business-news-stock-market-and-financial-advice angryfutureexpat. (2010, April 20). The Magnetar Trade ” CDOs, Charges Arbitrage, Vampire Squid, And Hand Careers. Retrieved Apr 22, 2013, from http://angryfutureexpat.wordpress.com/: http://angryfutureexpat.wordpress.com/2010/04/20/the-magnetar-trade-cdos-pricing-arbitrage-vampire-squid-and-hand-jobs/ Amoss, D. (2008, May 29). Lehman Bros. vs . Carry Stearns. Retrieved April 22, 2013, coming from http://goldnews.bullionvault.com/: http://goldnews.bullionvault.com/lehman_bear_stearns_fed_bonds_financial_052920082

References

Karen, F. Bela, S. (2010). Cuomo Sues Ernst & Young for Assisting Lehman Brothers in `Repo 105² Fraud. Recovered from http://www.bloomberg.com/news/2010-12-21/new-york-s-cuomo-said-to-plan-fraud-suit-against-lehman-s-accounting-firm.html Pranvera, D. (2010). Lehman Brothers’ go up and fall season: From main character to dirt. Retrieved coming from http://www.lcbr-online.com/index_files/proceedingssym12/12sym13.pdf Mandsperson, S. (2010). Lehman Brothers’ ‘Repo 105’ Accounting Scandal. Retrieved via http://www.wealthdaily.com/articles/lehman-brothers-enron-accounting-gimmicks/2375 Agatha, E. (2011). How Lehman Brothers Employed Repo 105 to Manipulate Their particular Financial Transactions. Retrieved by http://www.na-businesspress.com/JLAE/JeffersAE_Web8_5_.pdf Sam, C. (2010). Auditors under fire subsequent Lehman revelations. Retrieved via http://www.lwaltd.com/live/wp-content/uploads/2010/03/auditors-under-fire-following-lehman-revelations.pdf Amanda, J. (2010). What Position Did Credit history

Agencies Play in the Credit Crisis? Retrieved from http://blogs.law.uiowa.edu/ebook/sites/default/files/Part_5_3.pdf Lynn, A. (2009). For what reason We Need Derivatives Regulation.

Recovered from http://dealbook.nytimes.com/2009/10/07/dealbook-dialogue-lynn-stout/ Monetary Power of Singapore. (2012). Making the Trading of Derivatives Safer. Recovered from http://www.mas.gov.sg/news-and-publications/monetary-policy-statements-and-speeches/2012/making-the-trading-of-derivatives-safer.aspx Kevin, H. ( 2010). GREED, NEGLECT, OR PROGRAM FAILURE?

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Bibliography

Robyn Alman, R. C. (n. d. ). Lehman Brothers: A workout in Risk Mismanagement. Recovered 2013 йил 1-April by New England College of Business and Finance: http://www.necb.edu/resource_lehman-brothers-an-exercise-in-risk-management.cfm Latifi, S. (n. d. ). Lehman Brothers’ go up and land: From leading man to dirt, 2009. Retrieved 2013 йил 1-April from lcbr-online. com: http://www.lcbr-online.com/index_files/proceedingssym12/12sym13.pdf Saurav K. Dutta, D. C. (2010 йил August). Lehman’s Shell Video game Poor Risk Management. Retrieved 2013 йил 1-April from imanet. org: http://www.imanet.org/PDFs/Public/SF/2010_08/8lawson.pdf sourcewatch. (2012 йил 20-June). Lehman Friends. Retrieved 2013 йил 1-April from Sourcewatch: http://www.sourcewatch.org/index.php?title=Lehman_Brothers Carney, J. (2010 йил 17-March). Lehman Brothers Was Significantly Over Valuing Its CDOs. Retrieved 2013 йил 28-March from Business Insider Clusterstock: http://articles.businessinsider.com/2010-03-17/wall_street/30061008_1_lehman-brother-lehman-report-valuations Investopedia. (n. deb. ). Collateralized Debt Responsibility ” CDO. Retrieved 2013 йил 28-March from Investopedia: http://www.investopedia.com/terms/c/cdo.asp

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