Lehman’s failure shook Wall Avenue to its core. The Dow plummeted 504 points, the equal of 1,300 factors right this moment. Some $700 billion vanished from retirement plans and different funding funds. The panic that adopted plunged the American financial system right into a severe downturn, now generally known as the Nice Recession.
At the moment, Lehman Brothers and its CEO Dick Fuld are the poster kids for the reckless risk-taking that wrecked the financial system.
Frantic talks
Lehman’s closing days have been marked by frantic last-minute negotiations over its destiny.
Proper up till the tip, everybody thought somebody would rescue Lehman Brothers: Certainly the agency would not be allowed to fail. Bear Stearns, a smaller funding financial institution, had been saved just six months earlier by Washington and JPMorgan Chase.
On Wednesday, September 10, South Korea’s Korean Improvement Financial institution dropped out of the operating to be Lehman Brothers’ white knight. The information — mixed with Lehman’s announcement of a file $3.9 billion quarterly loss — despatched the…
