The last days of lehman brothers

The fincancial crisis begun when the United states of America housing market collapsed. What followed was that one of the biggest investment banking companies in the world lehman brothers would then file for bankruptcy. This was the largest bankruptcy of the entire world and happened on the 15^th of decemebr of 2008. This included 639 billion in assets and 619 billion in debt. Many different reasons like poor risk management, awful business decisions, managerial greed and many others combined let to an inevitable crash that the economy just could not support. The world economy was unregulated, and at the time borrowing money was fast and easy without much trouble. Mortgage lenders were then approving preety much every single application including the riskiest in turn banks kept buying mortgage payment streams even when of poor quality. Poor quality of higher returns because the risk is higher. The chief executive tried to prevent the companies crash but it was inevitable. The chief executive tries to raise capital to refund itself and managed to raise 17.5 billion but it wasn’t enough to re-capitalise the company. The last resort was the acquisition of the company with negotiations with bank of America and the uk barcalys happening. Comments were made that lehman brothers couldn’t now be bailed out because they lacked collateral that could cover the bailout making it illegal to bail them out. The company at the very core is to blame for their own downful as executives greed reached new heights. Its possible to pull one over the markets but at what cost? Is making people homeless the legacy that you want leave behind? Why can a bank have so much money that it can destabilise the whole world should there not be limiters to stop this happening?