Lehman Brothers bankruptcy from "summary" of Too Big to Fail by Andrew Ross Sorkin
The demise of Lehman Brothers was a pivotal moment in the 2008 financial crisis, sending shockwaves throughout the global economy. The bankruptcy of the investment bank was a result of years of risky bets on the real estate market, particularly in subprime mortgages. As the housing bubble burst, Lehman found itself drowning in toxic assets and struggling to maintain liquidity. Despite efforts to raise capital and find a buyer, Lehman was unable to stave off bankruptcy. The firm's collapse was not only a blow to its employees and shareholders but also had far-reaching consequences for the financial system as a whole. Lehman's failure led to a crisis of confidence in the markets, with investors fearing that other financial institutions could be next. The decision to let Lehman Brothers fail was a controversial one, with policymakers divided on how to handle the situation. Some argued that bailing out Lehman would set a dangerous precedent and reward risky behavior, while others feared the sy...
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