How did Lehman Brothers fall & the adverse effect on economy

1. The Weekend That Changed Wall Street Presented By – RohanPopli Rohit Seth RohitYadav Sameer Kalra

4. In 2007, Lehman underwrote more mortgage-backed securities than any other firm, accumulating an $85-billion portfolio, or four times its shareholders' equity which was $ 21 billion.

5. Lehman's high degree of leverage - the ratio of total assets to shareholders equity was 31.

6. On September 10, The firm reported a loss of $3.9 billion, including a write-down of $5.6 billion, and also announced a sweeping strategic restructuring of its businesses.

7. September 15, Lehman declared bankruptcy leading more than $46 billion of its market value wiped out.

8. It had a bank debt of $613 billion, $155 billion in bond debt, and assets worth $639 billion.

10. Conditions on Takeovers

11. Income Side Fall

12. Cash Flow Side Fall

13. Lehman Takeovers North America Asia Division

14. Collapse and Commercial Paper Market

16. Bailout ruled out

18. Reserve Primary , holder of $785 million in Lehman commercial paper.

19. Yield rising overnight.

21. Lehman Brothers and Commercial Paper Market Freeze -House Representatives rejects the $700 billion Troubled Asser Relief Program (TARP). - Yield surge most in more than a decade.

22. Lehman Brothers and Commercial Paper Market Freeze -House Representatives approves the $700 billion Troubled Asser Relief Program (TARP).

23. Lehman Brothers and Commercial Paper Market Freeze -Companies not able to find buyer. - Federal to create special fund to invest itself.

24. Lehman Brothers and Commercial Paper Market Freeze -Buying begins directly from companies , example GE. -Market grows for the first time.

25. Lehman Brothers and Commercial Paper Market Freeze -Recession results companies in need for cash. -Market shrinks for 16th straight week.

26. Collapse and Stock Market

27. Dow Jones Industrial Average

29. HANG SENG INDEX

30. NIFTY Index

31. Top 10 Bankruptcy

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