What Made Lehman Brothers To Go Bankrupt?

Lehman brothers’ was the largest bankruptcy in the history of US. Nobody expected that something like this would happen even to the bigger companies. It was a global company offering financial services to very bigger companies.

It was in 1850 that this firm started as a dry-goods store in Alabama. Two brothers, Emanuel and Mayer Lehman, expanded their business step by step, and their family members took it generation after generation to the state what it was prior to bankruptcy, the fourth largest investment bank in US.

Its significant destruction started in 2007 when it closed its BNC Mortgage, deploying 1,200 employees in 23 locations. It was subprime mortgage crisis in 2008 that made Lehman loss significantly as it held on larger positions of subprime. Then the year started as a bad luck to the company in the form of lower-rated mortgage-backed securities. On September, bank was making talks with Bank of America and Barclays to sell its company, to which both of them declined. It was on 2008, September 15th when its share plummeted more than 95%. And situations for Lehman declined day by day and finally on September 20, it was declared bankrupt.