Record Details

The Bankruptcy of Lehman Brothers: Causes, Effects and Lessons Learnt

Journal of Insurance and Financial Management

View Archive Info
 
 
Field Value
 
Title The Bankruptcy of Lehman Brothers: Causes, Effects and Lessons Learnt
 
Creator Adu-Gyamfi, Mike
 
Description The causes of the failure of Lehman Brothers, preventive measures, and recommendations for going forward constitute the subject for discussion in this paper. The bankruptcy of Lehman Brothers in 2008 sent shockwaves through the entire global banking and financial system across numerous and unexpected transmission channels when the price bubble in the US housing market tied to the subprime mortgage market suddenly burst. Actions, which largely relate to the risk return relationship, bad accounting treatment of financial transactions, and loose risk management policies and strategies at Lehman, led the financial conglomerate to its eventual collapse. Global stock markets, individual and corporate  investors, and staff of the Firm and its other related businesses bore the brunt of the financial disaster in the form of huge losses, liquidations, job losses, reduction in asset prices and a subsequent global financial crises which could have been prevented. Strong corporate governance structures, robust risk management policies, and constant, effective monitoring and supervision of financial institutions, especially the larger ones by regulatory bodies are therefore highly recommended to ensure against failure of financial institutions.
 
Publisher Journal of Insurance and Financial Management
 
Contributor —
 
Date 2016-06-14
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/36
 
Source Journal of Insurance and Financial Management; Vol 1, No 4 (2016): Journal of Insurance and Financial Management
2371-2112
 
Language eng
 
Relation https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/36/pdf
 
Rights Copyright (c) 2016 Mike Adu-Gyamfi
http://creativecommons.org/licenses/by/4.0