Lehman Brothers (LEH) in free Fall

US investment giant Lehman Brothers announced its bankruptcy early Monday

as the Federal Reserve and major global banks moved to shore up financial market shaken by the housing and mortgage crisis.

In a statement released after midnight, Lehman Brothers said it intended to file for bankruptcy "in order to protect its assets and maximize value."

The financial firm said the filing was authorized by its board of directors and will occur at the United States Bankruptcy Court for the Southern District of New York late in the day.

"Customers of Lehman Brothers, including customers of its wholly-owned subsidiary, Neuberger Berman Holdings LLC, may continue to trade or take other actions with respect to their accounts," the statement said.

The beleaguered Wall Street firm lost an estimated 3.9 billion dollars (2.7 billion euros) in its fiscal third quarter amid fresh writedowns on mortgage assets.

The bankruptcy announcement came after a last-ditch effort to find a buyer for the troubled investment bank collapsed Sunday.

"This isn’t a Bear Stearns-type situation, where CEO Alan Schwartz and others took too much risk but then got blindsided by fleeing creditors who put the firm out of business before Alan, et al, knew what hit them."

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The headquarters of Lehman Brothers investment bank in New York.

The dollar rallied against the euro on Monday, reversing earlier heavy falls, as foreign exchange dealers reacted to the US financial crisis after the collapse of investment giant Lehman Brothers.

World financial markets endured volatile trade Monday as US investment banking giant Lehman Brothers filed for bankruptcy after failing to find a buyer having been crippled by the US subprime housing crisis and credit crunch.

"The turbulences in the US financial system should stay in the focus of the FX (foreign exchange) markets in the next couple of days," said Commerzbank analyst Ulrich Leuchtmann.

Lehman Brothers

A global investment bank serving the financial needs of corporations, institutions,governments and high-net-worth investors worldwide.

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Isn’t this what they were paid millions and millions to do? Assess what was a tolerable amount of risk and create trust in their counter-parties? They failed at both and now Wall Street is making excuses for them saying they didn’t really understand the situation and what they were doing.
As for Fuld, at least he showing genuine commitment to Lehman, unlike Prince, O’Neal and the managements of Fannie and Freddie that impaired their companies and took the multi-millions and ran.



Lehman Brothers – Wikipedia, the free encyclopedia

[5] With the arrival of their youngest brother, Mayer Lehman, in 1850, the firm changed its name again and "Lehman Brothers" was founded. [4] [6]


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