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Saturday, September 13, 2008

Lehman Brothers Holding Inc. Crisis

Lehman Brothers an Introduction:
Lehman Brothers Holdings Inc. (Lehman Brothers) serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide. The Company provides an array of services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. The Company operates three business segments: Capital Markets, Investment Banking and Investment Management. Lehman Brothers generates client-flow revenues from institutional, corporate, government and high-net-worth clients by advising on and structuring transactions; serving as a market maker and/or intermediary in the global marketplace, including having securities and other financial instrument products; originating loans for distribution to clients in the securitization or principals market; providing investment management and advisory services, and acting as an underwriter to clients.

The Crisis:
Throughout the year 2008, the Lehman Brothers has reported losses. It has suffered from subprime lending rates. Gradually, its shares have started falling at world capital market. It has given rise to rumours that the management is trying to find buyers to help them come out this crisis. It is one of the major financial institution of America. If some things go wrong with it, it will push the capital market into crises and its repercussions will also appear in Indian Capital Market.



Sources:
Google Finance

Wikipedia

Subprime Mortgage: Wikipedia

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