Course:MGMT405 2021W2/Case-2i

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Lehman Brothers logo.svg
Industry: Commodities Trading and Brokerage Services[1]
Number of Employees: ~ 25,000[1]
Founders: Mayer Lehman, Emanuel Lehman, Henry Lehman[1]
Years in Operation: 158 Years[2]
Market Capitalization prior to Bankruptcy: ~ $60 Billion USD[1]

What Happened?

Background

In 1844, Heyum "Henry" Lehman immigrated from Bavaria, Germany to Montgomery, Alabama, opening up a small dry goods store deemed "H. Lehman."[3] Between 1847 and 1850, Henry's two younger brothers, Emanuel and Mayer, travelled from Germany to join their brother. Upon their arrival the Lehman Brothers was incorporated and the brothers began their entrance into the lucrative, fast expanding cotton trade.[3] Unfortunately in 1855, Henry Lehman died as a result of yellow fever, and the brothers subsequently made the decision to move the company's headquarters to New York.

Around 1860, New York was a booming centre for the cotton trade and the Lehman Brothers found great success in their ventures. Lehman's core business processes included the acquisition and distribution of cotton, and later participation in both the Coffee Exchange and the New York Stock Exchange. [3]In 1899, the company underwrote its first stock, though the company did not fully integrate into the business of underwriting until several years later.[4]

After the death of youngest brother, Emanuel, the company was subsequently passed down from generation to generation up until 1969, when the first non-family member was appointed acting CEO.

Timeline

1850:

  • The Lehman Brothers had a humble beginning, commencing operations in Montgomery, Alabama as a door-to-door sales company.
  • The Brothers quickly took the company from a local sales team to a national cotton distributor and in 1906 the company expanded into the investment banking world with an IPO assisted by Goldman Sachs.[5]

1997:

  • The company managed to stay relevant during the great depression through offering creative financing to other companies and in 1977 the company merged with Kuhn, Loeb & Co.
  • Following several years of operations, the company was purchased by credit behemoth, American Express Company, for a whopping $360 million USD.[5]

1994:

  • American Express announced the separation of the two entities.
  • Lehman Brothers underwent an IPO that accumulated more than $3 billion in capital,[5] and was subsequently listed on the New York Stock exchange as well as the Pacific Stock exchange.
  • Appointment of CEO Richard Fuld Jr.

2003-2004:

  • The Lehman brothers focused their operations on the sub-prime mortgage market.
  • It is important to note that during this period, the US housing market was experiencing rapid growth and individuals were buying homes they could not afford simply due to the “low risk” associated with land ownership.
  • During their entrance into the sub-prime market, the Lehman Brother’s also began accumulating vast amounts of real-estate.

2004-2007:

  • The Lehman Brother’s had accumulated a total of $146 billion dollars in sub-prime mortgages and $22 billion worth of real estate.[1]
  • To finance the purchase of said assets, the company had placed themselves in debt. The theory was to borrow money at a low rate, and subsequently invest it in “low risk” investments to return a greater profit.
  • Unforturnatley, much of the "low risk" assets that were invested in by the Lehman Brothers experienced a steep decline in value as the US housing market began to crash. This unforeseen set of circumstances forced the Lehman Brothers organization to further leverage their debt to maintain operations and the company's risk profile grew subsequently.

2008:

  • The Lehman Brother’s share price fell 45 percent when talks of capital infusion by the Korean Development Bank fell through.[3]
  • Informed by Moody’s financial services the need to acquire a strong financial partner to uphold their credit rating. Large banks, credit institutions, and the government were a few of the entities contemplating the buyout of Lehman Brother’s.
  • Due to the company’s mass holdings in sub-prime mortgage market, which were now experiencing high levels of default, entities were deterred from such acquisitions.

September 15th, 2008:

  • Lehman Brothers filed a chapter 11 petition for bankruptcy in the state of New York. The 158-year-old company at the time was the fourth largest investment bank in the US and had just come off their most profitable fiscal year, reporting a net income of over $4 billion USD.[3]
  • The company had over $691 billion in assets, only $7 billion of which was in cash, and had accumulated $668 billion in liabilities.[6]

Key Players

There are many key players leading to the collapse of the Lehman Brothers; however, one common theme is the involvement of Richard Fuld Jr. in each of the following sections below. Team 2i believes Richard Fuld is the most responsible for the governance failure, ultimately leading to the collapse of the fourth largest investment bank in 2008.[7]

Chairman and Chief Executive Officer: Richard Fuld Jr.

Richard S. Fuld Jr., Chairman of the Board of Directors and Chief Executive Officer of Lehman Brothers (1994 - 2008)

Richard Fuld Jr., often referred to as "the gorilla," was the Chairman of the Board and Chief Executive Officer (CEO) of Lehman Brothers from 1994 until 2008, when Lehman Brothers declared the largest bankruptcy in United States History.[8] Richard Fuld was initially in-charge of trading at Lehman Brothers, under Peter Peterson's tenure as CEO, and earned hefty bonuses of $1.6 Million along with his lucrative salary. [9] During a meeting in which partners were discussing key capital issues, a partner questioned Fuld's trading strategy and asked for a forecast of returns over the next several years. Fuld's response to the partner's question is stated as follows, "I do not know how I made it [high returns] over the last five years." [9] This response is significant in determining Richard Fuld's preliminary unethical practices before becoming CEO, as he could not explain the astronomical gains with an appropriate layout of his trading processes. Following American Express's divesture of Lehman Brothers, Harvey Gloub, CEO of American Express, requested Richard Fuld to become Chairman of the Board and CEO of Lehman Brothers in 1994.[9]

Richard Fuld gained Lehman's staff support immediately by correlating employee salaries with Lehman's earnings. In 2001, Lehman allocated approximately $544 Million (15.8%) in stock compensation for employees; whereas, Merill Lynch, a direct competitor of Lehman, only allocated 6.4% of stock compensation for employees. [9] From a corporate governance perspective, employees are more likely to conduct unethical business to boost valuation and profitability, as opposed to focusing on the core fundamentals of Lehman Brothers. As Lehman Brothers prioritized hyper-growth to climb the ranks of the largest investment firms, Richard Fuld increased his risk appetite by gambling on riskier deals. Henry Paulson, U.S. Secretary of Treasury during 2006 - 2009, noted Lehman's increase in risk appetite as Fuld took an enormous risk on commercial real estate, despite evident signs pointing to an unfavourable deal for Lehman's near future.[10] Approximately 18 months prior to Lehman's bankruptcy, Mike Gelband, head of capital markets, constantly warned Fuld about mortgage markets overextending with volatility on the horizon; however, Fuld told Gelband he was "too conservative," and once again displaying his increased risk appetite for Lehman's projects.[9] According to government officials and analysts, Paulson often regarded Richard Fuld as a "gambler", who had lost sight of reality.[10] Richard Fuld pursued risky deals to bolster Lehman's stock performance; however, Fuld disregarded appropriate risk management measures before accepting a project, ultimately risking shareholders' investments in the organization.

In 2008, Fuld was adamant on a key strategy he proposed to appease markets, which would spin-off the troubled assets of Lehman's commercial real estate portfolio into a "bad bank" called SpinCo.[11] The "bad bank" solution was a crucial factor for the major banks during the 1980s, where the government would infuse cash into financial institutions to purchase their "toxic" assets and transfer them into a new, federally controlled financial institution. [12] Fuld was willing to conceal Lehman's toxic assets to portray a favourable balance sheet for potential investors; however, the repercussions of his strategy hinder relevancy and materiality for financial statements, broadening the gap of information asymmetry for potential investors. In final analysis, Richard Fuld's impractical risk appetite for Lehman's deals ultimately led to the downfall of the Lehman Brothers.

Board of Directors

The Board of Directors played a key role in the collapse of the Lehman Brothers, especially since Richard Fuld Jr. was the CEO of Lehman Brothers and the Chairman of the Board. [13] The board of directors are elected by shareholders to protect their investments and guide strategic direction for continued profitability and mitigate any going concern issues. As the head of the board of directors, Fuld was in a position to convince the board of pursuing risky deals to prioritize Lehman's growth. The composition of the board of directors plays a key role in the collapse of Lehman Brothers, as they failed to represent shareholders' and protect their investments.[13]

Lehman's board consisted of ten individuals, nine of whom were retired, four over the age of 75, and only two had sufficient knowledge and experience in the finance industry. Furthermore, each of the directors oversaw an average of three other organizations' boards, and even ran their own companies.[13] The composition of the board is significant in the collapse of the Lehman Brothers, as directors did not prioritize Lehman's shareholders and failed to provide enough time and energy into monitoring Lehman's operations. Furthermore, the board of directors did not take the initiative of educating themselves on the risks behind Lehman's deals, failing to act in the best interests of Lehman's shareholders. [13] The board of members, similar to Fuld, prioritized double digit growth and their strategy consisted of complex financial derivatives; however, they did not realize the repercussions of risks associated with high levels of leverage and inadequate equity. [13] There were also multiple threats of independence for the board of directors, as many had a brokerage or investment account owned by them directly or indirectly through Lehman Brothers. [13] As the board of directors are likely concerned with their personal investments, it is highly probable that they would support initiatives to directly benefit their investment, as opposed to acting in the best interests of the organization and shareholders. The lack of knowledge, prioritization, and threats of independence severely hindered the board of directors' ability to govern Lehman Brothers and protect shareholders' investments.

Former U.S. Secretary of Treasury: Henry Paulson

Henry Paulson, Former U.S. Secretary of the Treasury

The Former U.S. Secretary of Treasury, Henry Paulson, played a key role in the collapse of Lehman Brothers, as he failed to bail out the organization without sufficient collateral.[14] As quoted by the former Secretary of Treasury, "I [Paulson] never once considered it appropriate to put taxpayer money on the line" to bail out failing companies that would take on absurd amounts of risk.[14] Paulson and the government's refusal to bail out Lehman Brothers led to financial panic; however, some analysts believe the panic could have been averted if Lehman was bailed out.[14] Coincidentally, the U.S. Department of Treasury established the Troubled Asset Relief Program (TARP) in October 2008, one month after the collapse of Lehman Brothers, to authorize $475 Billion of government funds to the auto industry, bank investment programs, credit market programs, executive compensation, housing, and investment in American International Group (AIG).[15] TARP approximately committed $250 Billion in government funds to support the large and small financial institutions, of which $5 Billion was cancelled.[15] Paulson and the Federal Reserve bailed out smaller firms after Lehman Brothers but did not want to provide a bailout loan to Lehman without sufficient collateral. Lehman could not provide sufficient collateral because of the complexity of valuation regarding their "toxic" assets, which can be credited to Richard Fuld's risky growth strategy.[11] Paulson had been in contact with Fuld for many months prior to the bankruptcy, urging the CEO to scale back Lehman's leverage and find a potential buyer or investor for a cash infusion. Fuld was too stubborn to admit defeat, as he constantly demanded terms too favourable for Lehman to attract any investors or buyers.[14] During Paulson's tenure as Chairman and CEO of Goldman Sachs, he successfully lobbied congress for new rules to allow investment firms to double the amount of leverage they could partake; however, his proposed rules led to Lehman taking on an unfeasible amount of high leverage, ultimately leading to the firm's downfall.[14]

Auditors: Ernst & Young

Ernst & Young Global Limited (EY) served as the independent auditor for the Lehman brothers from 2001 to the bankruptcy in 2008.[16] EY signed off on Lehman's financial statements and issued an unqualified opinion, in which the auditor provides reasonable assurance that a company's financial statements are fairly presented and in compliance with generally accepted accounting principles (GAAP).[16] When the Lehman bankruptcy examiner, Anton Valukas, was assigned to the case, he raised some concerning points about Lehman's accounting methods and EY's lack of professional judgement. [16] EY was aware of Lehman's use of accounting for Repo 105 purchase agreements without any disclosures, which allowed Lehman to transfer approximately $50 billion from its balance sheet to provide more favourable results.[16] Furthermore, EY was also aware of Lehman's inclusion of impaired assets in its liquidity pool. In final analysis, Valukas concluded that EY's negligence towards Lehman Brothers audits misled financial statement users.[16]

Chief Financial Officer: Erin Callan

Erin Callan joined Lehman Brothers in 1995, transitioning from tax law to investment banking and shot up to CFO by the age of 41.[17] Building up to the bankruptcy in September 2008, Callan was tasked to host an earnings call in March 2008 to convince shareholders that Lehman was not concealing any impairment of asset valuations and mitigate any going concern issues.[18] Callan had only been CFO for three months prior to hosting the earnings call; however, she answered multiple shareholder questions over the next hour and Lehman's stock price rose 15% in an hour, ultimately increasing market capitalization by more than $4 billion.[18] According to Fortune Magazine, Fuld's only complaint was, "You shouldn't have hung up on the call. Because as long as you were on there, the stock kept coming up."[18] This is significant because it implies that Callan was concealing the true financial position of the firm during the earnings call, and misled shareholders to believe Lehman was financially stable. However, a court-appointed examiner concluded that Callan breached her duties as CFO by neglecting "ample red flags" over the complex Repo 105 purchase agreements to conceal Lehman's impaired assets and declining market values.[17]

Key Stakeholders and Groups

Primary stakeholders are those that have a direct interest in the company and usually face financial loss if the company fails.[19] On the othe hand, secondary stakeholders do not hold direct interests in a business but can have a reasonable influence over a business’s dealings[19] Lehman Brothers' fall had an impact so large that it is possible to see its effects on other financial institutions, governments and even individuals at a global scale, therefore it was important to split the stakeholders into these groups for better understand it.

Primary Stakeholders
Lehman Brothers itself
  • In February 2007, Lehman's stock price reached a record $86.18 per share, giving it a market capitalization of nearly $60 billion[1]
  • Lehman stock plunged 93% between the close of trading on September 12, 2008, and the day it declared bankruptcy.[1]
  • Attempts to save the company through repurchases led to an irreparable loss of brand as people lost confidence in them[20]
Lehman Brothers' employees
  • When Lehman Brothers filed for bankruptcy, some 25,000 people were left searching for work most of whom found jobs at other banks.[21]
  • Some employees suffered significant wage losses due to to the loss of firm-or industry-specific skills or poor matches between workers and firms[21]
Customers Broker-Dealer Customers
  • There were minimal disruptions to most customers of its broker-dealer, Lehman Brothers Inc. (LBI) since by law, customer assets and Lehman’s own assets were segregated[21].
  • In contrast to most retail customer accounts, LBI’s institutional customers, in particular, its prime broker accounts, faced delays in resolving their claims.[21]
  • Hedge fund customers of Lehman’s U.K.-based broker-dealer Lehman Brothers International (Europe) (LBIE) faced more severe problems.[21]
  • Even though many mutual funds were transferred to Barclays some mutual funds had poor performance in the year after Lehman’s collapse.[21]

Client Firms

  • Firms that utilized Lehman for underwriting their bond and equity issuance, facilitating mergers and acquisitions, and for making markets in their securities also suffered.[21]
  • There were large declines in the stock prices of Lehman’s equity underwriting clients in the days around its bankruptcy.[21]
  • In contrast to equity underwriting clients, other types of underwriting clients, as well as mergers and acquisitions clients and firms receiving analyst coverage, did not face substantive losses.[21]
Debt and equity holders
  • Lehman was overleveraged since they had borrowed money in order to invest in mortgage-backed securities (MBS) but when it was revealed that the assets used as collateral for those MBSs were worth a lot less than they thought, they became worthless and Lehman’s spread went from positive to negative.[22]
  • Their debt-to-equity ratio was between 30-60 which was very high compared to commercial banks which usually have a ratio of 10 to 1[1].
  • Debt holders suffered largely due to this but so did shareholders as their investments tanked as well.
The auditors
  • Prior to the bankruptcy, Lehman worked hard to make its financial condition look better than it was by using the Repo 105 maneuver to convert securities and other assets into cash needed for a firm’s various activities.[20]
  • Their auditors, an accounting firm Ernst & Young, signed off on Lehman Brothers' books faced fraud charges due to their negligence.[19]
  • Ernst & Young's reputation also suffered as they are now often associated with the fall of the Lehman Brothers.
Secondary Stakeholders
Global financial markets
  • The Lehman Brothers collapse was one of many issues that led to the country’s greatest economic downturn since the crash of 1929.[23]
  • Closures of its London office and other international subsidiaries sent shock waves through the global financial markets with a widespread ripple effect since they were a vital source of lending throughout the world.[23]
Legislative bodies and policy makers
  • The impact of Lehman Brothers' bankruptcy was significant enough to stimulate the need to implement more robust risk management systems (like Base III) and increasing the intensity of scrutinizing financial intermediaries.[24]
  • The Dodd-Frank Act was created by legislators as the principal political response to the banking crisis which details the rules that traders and C.E.O.s alike have to follow.[25]
  • Regulatory bodies like European Supervisory Authorities were created to monitor such crises.[26]
The community at large
  • There was a ripple effect of unemployment as people in related fields also lost their jobs. "Unemployment rates skyrocketed, but millennials suffered the most—unemployment rates for those aged 16-24 rose from 9.9% in May 2007 to a record 19.5% by April 2010".[27]
  • People around the world also became more cynical towards institutions like Lehman Brothers and are now more cautious when they borrow and invest money.[20]

Current Status & Lawsuits

The financial fallout from the bankruptcy of the Lehman Brothers in 2008 was extremely wide ranging. As it was the largest failure of an investment bank since 1990 when Drexel Burnham Lambert Inc. collapsed[28], the consequences and legal results of the case affected millions of people. Creditors and small, private investors were one group that felt the significant fallout from the bankruptcy of the Lehman Brothers.

Credit Suisse

Credit Suisse, one of Lehman’s big derivative counterparties, sued the investment bank for $1.2 billion over the holdings of Lehman’s derivatives [29]. The Swiss bank was a major holder of Lehman’s derivatives before the collapse in 2008, and claimed the costs retrieved from the lawsuit would cover the tens of thousands of derivative trades prior to the bankruptcy. In 2018, the lawsuit was ultimately settled for $385 million, after the Lehman Brothers claimed the original asking price was inflated [30]. Lehman believed that the $1.2 billion in Credit Suisse claims may be worth only $75 million. The U.S. Bankruptcy Court in Manhattan, New York heard and settled this case.

JPMorgan Chase

The second major lawsuit, this time filed against JPMorgan, was settled in 2017 for approximately $798 million. Unlike the previous lawsuit, the Lehman Brothers collected this money after it was claimed that JPMorgan was exploiting its leverage as Lehman’s main clearing bank to extract all major liquidity from the company in the days leading up to the bankruptcy [31]. JPMorgan had been Lehman’s largest secured creditor and had unnecessarily extracted billions of dollars of collateral prior to the filing of Chapter 11 bankruptcy in September 2008.While wrongdoing was not admitted by JPMorgan, the largest U.S. bank, the settlement comes after Lehman sued them for $8.6 billion to recoup money for Lehmann creditors.

Ernst & Young

A third concluded lawsuit was settled with auditor Ernst & Young (EY) in 2013 over the misstatement of financial records before the investment bank’s collapse triggered the financial crisis of 2008 [32]. EY agreed to pay $99 million to former Lehman Brothers investors, who accused the auditor of helping Lehman alter and misstate their financial records. The investor-led lawsuit believed that EY turned a blind eye when its audit client Lehman Brothers misled investors prior to the bankruptcy filing in 2008. Ernst & Young's defense was that Lehman was a highly leveraged entity operating in a risky industry and that the audited financial statements clearly presented this. EY ultimately denied all liability but settled the case to put the legal matters behind them.

Class Action Lawsuit

Former Lehman Brothers investors also reached an agreement in 2011 with Morgan Stanley, Bank of America, and 30 other underwriters for $417 million [33]. The class action lawsuit accused the underwriters of helping perpetuate misstatements about Lehman’s finances. Other underwriters included in the settlement included Bank of New York Mellon, Citigroup, and Wells Fargo. The U.S. Bankruptcy Court approved a payback plan that would settle the money owing within three years.

Where are the Key Players now?

CEO Richard “Dick” “The Gorilla” Fuld

Richard Fuld arguably recovered well from the bankruptcy of Lehman Brothers and managed to disassociate himself somewhat with the failure of the company.

Fuld, kept under the radar for a couple years, as one may do when they are known as “the villain” or one of the 25 people responsible for the financial crisis of 2008[34][35]. Fuld doesn’t accept blame for the downfall of Lehman stating that his actions and decisions “were both prudent and appropriate” [36]. Fuld does however accept his failure in rescue efforts before bankruptcy although he blames various politicians for loosening lending standards, regulators like Henry Paulson for forcing the firm into bankruptcy and homeowners for their negligence[36].

Richard Fuld kept under the radar but didn’t exactly hide in the shadows. Soon after the crisis and bankruptcy of Lehman Brothers, Fuld launched Matrix Advising in May, 2009 which would advise small and medium size firms about fundraising, sourcing private equity and venture capital [37]. The firm grew steadily as Fuld assured interviewers that he intends on staying small [36].

Approximately 8 years later in 2016, Fuld along with some associates founded Matrix Private Capital Group, and after a year had accumulated over $100 million in assets according to The Financial Times [36]. Fuld apparently has no regrets and is quoted in saying: “Whatever it is, enjoy the ride, No Regrets”. It seems that this has worked well for him, because after 6 years, he has moved from CEO to Chairman of Matrix Private Capital and is credited with earning roughly $500 million over the course of his 14 years at Lehman Brothers [34]. According to Bloomberg, Fuld is also an existing member of the reputable World Economic Forum and The Business Council [37].

US Treasury secretary Henry “Hank” Paulson

Henry Paulson was criticized in his response to the financial crisis from multiple angles arguing that he either did too much to bail out failing firms or doing too little in advance of Lehman Brothers’ failure, resulting in a worsening of the bank’s position and the financial crisis in general [38][39]. It should be noted however, that Henry Paulson was nominated as runner up to TIME’s person of the year in 2008 because of his response to the financial crisis. The public view of Paulson during and after the crisis changed dramatically, and he was praised by colleagues and foreign economists, financial analysts and according to Glenn Hubbard, Dean of the Columbia Business School did a job no one else was better suited for [40].

After the financial crisis, Paulson became increasingly interested in foreign affairs, improving trading relationships with China, Panama, Colombia, South Korea and Peru [38]. Paulson was succeeded as Treasury secretary by Timothy Geithner in 2009 [41]. In 2010, Paulson went on to release a book discussing the government’s handling of the economic crisis titled: “On the Brink: Inside the Race to Stop the Collapse of the Global Financial System” [41]. In 2011, Paulson founded the “think and do tank” Paulson Institute which aims to foster US-China trade relations and develop global economic relationships[42]. Paulson went on to author “Dealing with China” and co-author alongside Ben Bernanke and Tim Geithner; “First Responders” and “Firefighting”. Furthermore, Paulson being a conservationist and international collaborator went on to chair The Nature Conservancy Board of Directors, co-chair Aspen Institute’s Economic Strategy Group, the Advisory Board of the Bloomberg New Economy Forum, the Risky Business Project and the Latin American Conservation Council which he founded in 2011[42].

Ernst & Young

The accountability and repercussions of Ernst & Young's involvement in the downfall of the Lehman Brothers is not long forgotten. Ernst and Young do not have to pay the $150 million sought by prosecutors in the 2010 case against the company for its involvement in the Lehman Brothers scandal, although Ernst & Young LLP will pay $10 million to settle a lawsuit accusing the company of acting to deceive investors on top of the $99 million[43]. The case is the only law action by the New York Attorney General Eric Schneiderman in relation to the Lehman Brothers who also said: “If auditors’ reports...provide cover for their clients by helping to hide material information, that harms the investing public, our economy and our country,”[43].

Ernst & Young maintains its innocence and in 2015 stated: "After many years of costly litigation, we are pleased to put this matter behind us, with no findings of wrongdoing by EY or any of its professionals". The company commits to improving internal governance, controls and accountability for the future and have set benchmarks in maintaining that accountability. Ernst and Young intend on using collaborative accountability through the World Economic Forum's International Business Council and ESG (Economic, Social and Governance) reporting to fulfil their commitment to self-accountability[44].

CFO Erin Callan

Former lawyer by profession, Eric Callan “did not have even basic accounting qualifications”[34]. Having joined the Lehman Brothers in 1995 and being promoted to CFO in 2007, Erin Callan was fired just 2 months before the bankruptcy of the Lehman Brothers but this did not save her from condemnation. It is noted that Callan was shoved over a “glass cliff” having been placed in a position she wasn’t qualified for to supposedly improve diversity within the company’s upper management [17]. Erin Callan was openly slammed in court for her lack of qualifications and her “super-positive style” that failed to ignore “ample  red flags”. Callan was ultimately responsible for bolstering Lehman Brothers’ books around $50bn and misleading investors with a positive outlook on the financial position of the company. Callan reportedly quit in 2008 in a management reshuffle and joined Credit Suisse for a brief 6 months before “taking a leave of absence”. Callan’s mental health suffered as a result of the situation and according to her self published memoir took an overdose of sleeping pills in December, 2008[34]. Callan moved on, placing higher focus on herself and her mental health and is currently founder of Triple M Publishing, co-founder of Life Balance Foundation and Vice Chairman of Matrix Investment Holdings[45].

Reference List

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Lioudis, N. (2021, January 30). The collapse of Lehman Brothers: A case study. Investopedia. Retrieved March 29, 2022, from https://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp#axzz2DhbMEUAv
  2. ↑ Kenton, W. (2020). Lehman Brothers. Investopedia. Retrieved from https://www.investopedia.com/terms/l/lehman-brothers.asp#:~:text=At%20the%20time%20of%20its,private%20equity%2C%20and%20associated%20services.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 Terrel, E. (November 26, 2021). "Cotton, Mortgages, and the Lehman Brothers". Library of Congress. Retrieved March 14, 2022.
  4. ↑ Chadha, P. (2016). "What Caused the Failure of Lehman Brothers? Could it have been Prevented? Recommendations for Going Forward" (PDF). International Journal of Accounting Research. Retrieved March 16, 2022.
  5. ↑ 5.0 5.1 5.2 "Lehman Brothers - A Fall from Grace". Corporate Finance Institute. Corporate Finance Institute. 2022. Retrieved March 14, 2022.
  6. ↑ "Lehman Brothers Holding Inc". United States Securities and Exchange Commission. May 30, 2008.
  7. ↑ Amadeo, Kimberly (January 29, 2022). "Lehman Brothers Collapse". The Balance.
  8. ↑ Cheng, Evelyn (May 28, 2015). "Lehman's Fuld: No one thing caused the crisis". CNBC.
  9. ↑ 9.0 9.1 9.2 9.3 9.4 McDonald, Oonagh (2015). Lehman Brothers: A Crisis of Value. Manchester University Press. pp. 1–10. ISBN 9781784993405.
  10. ↑ 10.0 10.1 Thomas, E., & Hirsh, M. (2009, May 25). Paulson's complaint: Lehman brothers disappeared with hank paulson's reputation. he wants it back. Newsweek, 153 Retrieved from https://www.proquest.com/magazines/paulsons-complaint/docview/214253734/se-2?accountid=14656
  11. ↑ 11.0 11.1 Samuels, M. (Director). (2009). The Last Days of Lehman Brothers. British Broadcasting Company (BBC).
  12. ↑ Holmes, Max (January 31, 2009). "Good Bank, Bad Bank: Good Plan, Better Plan". The New York Times.
  13. ↑ 13.0 13.1 13.2 13.3 13.4 13.5 Klepczarek, E. (2017). The importance of the board of directors. lessons from lehman's failure. Ekonomia i Prawo, 16(1), 59-73. doi:http://dx.doi.org/10.12775/EiP.2017.005
  14. ↑ 14.0 14.1 14.2 14.3 14.4 Thomas, E., & Hirsh, M. (2009, May 25). Paulson's complaint: Lehman brothers disappeared with hank paulson's reputation. he wants it back. Newsweek, 153 Retrieved from https://www.proquest.com/magazines/paulsons-complaint/docview/214253734/se-2?accountid=14656
  15. ↑ 15.0 15.1 U.S. Department of the Treasury (2022). "Troubled Assets Relief Program (TARP)". U.S. Department of the Treasury.
  16. ↑ 16.0 16.1 16.2 16.3 16.4 Wiggins, R., Bennett, R., & Metrick, A. (2019). The Lehman Brothers Bankruptcy D: The Role of Ernst & Young. The Journal of Financial Crises, 1(1), 1-25. https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1003&context=journal-of-financial-crises
  17. ↑ 17.0 17.1 17.2 Clark, A. (2010). "Lehman Brothers' golden girl, Erin Callan: through the glass ceiling – and off the glass cliff". The Guardian. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  18. ↑ 18.0 18.1 18.2 Sellers, P. (2010). The fall of a Wall Street highflier. Fortune Magazine. Retrieved from https://archive.fortune.com/2010/03/05/news/companies/erin_callan_lehman_full.fortune/index.htm
  19. ↑ 19.0 19.1 19.2 Primary stakeholders vs secondary stakeholders - definitions, examples, differences. Termscompared. (2019, August 28). Retrieved from https://www.termscompared.com/difference-between-primary-and-secondary-stakeholders/
  20. ↑ 20.0 20.1 20.2 Lehman's demise and Repo 105: No Accounting for Deception. Knowledge@Wharton. (2010, March 31). Retrieved from https://knowledge.wharton.upenn.edu/article/lehmans-demise-and-repo-105-no-accounting-for-deception/
  21. ↑ 21.0 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 Denison, E., Fleming, M. J., & Sarkar, A. (2019, January 16). Customer and employee losses in Lehman's bankruptcy  . Liberty Street Economics. Retrieved from https://libertystreeteconomics.newyorkfed.org/2019/01/customer-and-employee-losses-in-lehmans-bankruptcy/
  22. ↑ Berman, K., & Knight, J. (2014, July 23). Lehman's three big mistakes. Harvard Business Review. Retrieved March 14, 2022, from https://hbr.org/2009/09/lessons-from-lehman.html
  23. ↑ 23.0 23.1 Library, H. B. S. B. (n.d.). Global impact of the collapse. Harvard Business School, Baker Library Bloomberg Center. Retrieved March 15, 2022, from https://www.library.hbs.edu/hc/lehman/exhibition/global-impact-of-the-collapse
  24. ↑ Tandoh, B. (2021, May 8). The failure of the Lehman Brothers: Causes, effects, and lessons for the future. LinkedIn. Retrieved March 16, 2022, from https://www.linkedin.com/pulse/failure-lehman-brothers-causes-effects-lessons-future-bismark-tandoh/
  25. ↑ Cassidy, J. (2013, August 28). What has changed since Lehman failed? The New Yorker. Retrieved March 14, 2022, from https://www.newyorker.com/news/john-cassidy/what-has-changed-since-lehman-failed
  26. ↑ 10 big changes since Lehman. Simmons & Simmons. (n.d.). Retrieved March 13, 2022, from https://www.simmons-simmons.com/en/publications/ck0b0x4n977ao0b942vvsw14u/120918-10-big-changes-since-lehman
  27. ↑ Amadeo, K. (2022, January 29). How the 2008 Lehman Brothers Collapse Affects you Today. The Balance. Retrieved March 13, 2022, from https://www.thebalance.com/lehman-brothers-collapse-causes-impact-4842338
  28. ↑ Fromson, Brett (October 16, 2015). "The Last Days of Drexel Burnham".
  29. ↑ Fitzgerald, Patrick (June 13, 2018). "Lehman Settles $1.2 Billion Derivatives Fight With Credit Suisse".
  30. ↑ Zacks (June 14, 2018). "Credit Suisse (CS) Settles Lawsuit With Lehman for $385M".
  31. ↑ Stempel, Jonathan (February 1, 2018). "JPMorgan to pay Lehman $797.5 million to end litigation over collapse".
  32. ↑ Brown, Nick (October 18, 2013). "Ernst & Young to pay $99 million to end Lehman investor lawsuit".
  33. ↑ Brown, Nick (December 6, 2011). "Lehman investors, underwriters in $417 million accord".
  34. ↑ 34.0 34.1 34.2 34.3 Farrel, S. (2018). "Lehman Brothers collapse: where are the key figures now?". The Guardian. Retrieved 20/02/2022. Check date values in: |access-date= (help)
  35. ↑ Pickard, J. (2018). "Richard Fuld is rebuilding his career in wealth management 10 years after Lehman's". Private Banker International. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  36. ↑ 36.0 36.1 36.2 36.3 McLannahan, B. (2017). "Dick Fuld makes quiet comeback on Wall Street". Financial Times. Retrieved 16/03/2022. Check date values in: |access-date= (help)
  37. ↑ 37.0 37.1 "Richard S Fuld "Dick"". Bloomberg. 2022. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  38. ↑ 38.0 38.1 Chen, J. (2021). "Henry Paulson". Investopedia. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  39. ↑ "25 People to Blame for the Financial Crisis". Time. n.d. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  40. ↑ Fox, J. (2007). "Henry Paulson". Time. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  41. ↑ 41.0 41.1 Nolen, J. (2022). "Henry Paulson". Britannica. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  42. ↑ 42.0 42.1 "About the Founder". Paulson Institute. 2022. Retrieved 25/02/2022. Check date values in: |access-date= (help)
  43. ↑ 43.0 43.1 Freifeld, K. (2015). "Ernst & Young settles with N.Y. for $10 million over Lehman auditing". Reuters. Retrieved 26/02/2020. Check date values in: |access-date= (help)
  44. ↑ Di Sibio, C. (2021). "EY Value Realized: Reporting progress on EY's global impact in 2021". Ernst & Young. Retrieved 26/02/2022. Check date values in: |access-date= (help)
  45. ↑ Callan Montella, E. (2022). "Erin Callan Montella". LinkedIn. Retrieved 26/02/2022. Check date values in: |access-date= (help)
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