lehman brothers

Could Terrorists Create a Market Crash?

September marks the anniversary of two events that rocked the markets: the 9/11 terrorist attack in 2001 and the Lehman Brothers bankruptcy in 2008. Some are worried that similar events could happen again. We recently interviewed an economist who has explored the possibility of a terrorist attack on the financial system.

Two Lehman Brothers Units Need Help to Avoid Failing

Lehman Brothers Holdings, the once great Wall Street firm that went bankrupt at the height of the financial crisis, says it will have to pour hundreds of millions of dollars into two struggling units to avoid failures that could cost the investment bank billions.

Fuld: Regulators Had 'Flawed Information' in Lehman Bankruptcy

U.S. regulators used "flawed information" when they decided not to extend the kind of aid to Lehman Brothers that later went to other financial institutions, the bank%u2019s former CEO Richard Fuld says. Lehman filed for the nation%u2019s largest-ever bankruptcy in September 2008, a move that sparked panic in the financial markets.

The 25 Companies That Cut 700,000 Jobs

Since the recession began, more than 8 million Americans have lost their jobs. But perhaps even more surprising is the small number of companies that are responsible for laying off such a large percentage of today's unemployed workers.

Biz Brief: Lehman Brothers' European Creditors May Get Paid in 2011

Lehman Brothers, whose 2008 death signaled the gravity of the financial crisis, remains very much alive to those of its creditors still awaiting payment. Now, it looks like some businesses in Europe could get speedier payments than they would have gotten otherwise.

SEC Reviewing Accounting at 19 Largest U.S. Banks

The Securities and Exchange Commission is examining whether any of the 19 largest U.S. banks are using an accounting trick that a bankruptcy examiner has said led to the collapse of Lehman Brothers, SEC Chairman Mary Schapiro said Tuesday. Schapiro testified at a congressional hearing that the SEC is scrutinizing Lehman's use of the accounting move, known as Repo 105, that allowed it to mask its weakness before it failed.

Capitol Hill Revisits the Lehman Brothers Collapse

Timothy Geithner and Ben Bernanke told lawmakers on Tuesday that the Lehman bankrupcty is the best example of the need for the Obama administration's proposed financial regulatory reforms. Former CEO Dick Fuld defended the bank, claiming it was hit by a "perfect storm."

Can Public Companies' Financial Statements Be Trusted?

A study found big banks like Goldman Sachs and Citi temporarily lower their debt by an average of 42% at the end of quarters. After their financial reports are issued, previous debt levels are resumed. Like Lehman Brothers' Repo 105 trick, this is dangerous for investors.

Legal Briefing: The Lehman Repo 105 Lawsuits Begin

An investor has sued the bankrupt company and its former execs for using a financial tactic to present a misleadingly strong picture of the firm's health. The suit is the first in what could be a wave of legal actions.

Enron Hits Broadway: Story More Timely than Ever

Enron, a musical hit about the Texas energy company's dizzying rise and fall, is coming to Broadway. The story of high finance and fraud unfolded nine years ago, but in an economy still reeling from the Lehman Brothers collapse, it's lessons are more relevant -- and funnier -- than ever.

The Business Decisions That Brought Lehman Down

Sure, Lehman's accounting gimmicks played a role in its downfall, but the star of the show was a business strategy the left prudence behind in all-out pursuit of risk and reward. Too bad, risk won out.

Lehman Report: Were Securities Regulators Out to Lunch?

The report detailing Lehman Brothers's deliberate misstatements in public filings details the failure of federal regulator to regulate the bank, which went bankrupt in 2008. Also nailed is the Federal Reserve's hands-off approach toward Lehman. Better regulation may have saved the bank.

Lessons from Lehman: Don't Let CEOs Write Their Own Report Cards

The Lehman Brothers accounting mess shows that to get serious about protecting shareholders, we need to take away CEOs' power to write their own report cards. This would mean creating an independent group of accountants not paid by public companies who would produce their financial reports.

The Lehman Report Doesn't Fault the Other Big Banks

Bankruptcy examiner Anton Valukas focused a lot attention on the business Lehman Brothers did with all the big banks. However, after an exhaustive review, he takes no real issue with anything they -- or even Lehman -- did regarding certain transactions.

The Lehman Report: A Road Map for Criminal Charges

Bankruptcy examiner Anton Valukas has released details about so many deliberate material misstatements the firm made in securities filings and public statements that former CEO Richard Fuld and former CFO Erin Callan and will almost certainly face criminal charges. Others could as well.

Lehman Hastened Its Own Bankruptcy: Report

At $639 billion, Lehman Brothers' bankruptcy was the biggest in U.S. history. Now a federal judge has released a report saying that rather than working to prevent the collapse, senior Lehman executives, auditor Ernst & Young and other investment banks may actually have hastened it.

Henry Paulson's Memoir Is a Cautionary Tale

Henry Paulson's just-published memoir "On the Brink" recalls the financial crisis as it unfolded in the fall of 2008. Far from a gossipy tell-all, it devotes the bulk of its pages to the cautionary tale of how the world's financial system nearly collapsed -- and what he tried to do about it.

The global art market finds its floor

The 2008/2009 art market ended seven years of astonishing price inflation. By the end of 2008, contemporary art suffered a price decline of 27.1...