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Lehman Brothers

  • In their different ways, Bank of America Merrill Lynch, Nomura and Barclays have come to define the successes and challenges that have shaped banking in the past decade.
  • Imagining capital markets and investment banking in 2018 without the global financial crisis is a big leap. The chaos and turmoil of 2008 deeply scarred traders, bankers and regulators and defined the intellectual imperatives for the changes that followed — the wholesale revamp of prudential and markets regulation, the bailouts, the reorganisations, the new monetary tools and new ways of seeing the world. But the past 10 years haven’t all been about the crisis.
  • Nomura this week bought the investment banking and equities businesses of Lehman Brothers in Europe and the Middle East.
  • Bankruptcies of this size are just not supposed to happen. At 5.30am London time this Monday, Lehman Brothers — one of the remaining investment banking giants of Wall Street — announced it was filing for Chapter 11 bankruptcy.
  • • $3.9bn Q3 loss racked up after Alt-A hedging failure • $30bn plan to spin-off REI comes too late • Fannie and Freddie bailout euphoria wiped out Lehman Brothers was front, back and centre of events in the credit market this week and at the close in New York yesterday rumours gathered strength that Bank of America is poised to rescue the ailing investment bank.
  • Lehman Brothers began the week reshuffling its senior management in global fixed income and across the European investment bank as it attempted to put in place a team that could guide it through an independent future.
  • A noose of market speculation and rumour tightened around Lehman Brothers this week pushing five year default protection on the venerable New York investment bank wider by 70bp to 375bp — equivalent to a lowly double B rated credit.
  • "The general question is: have you taken sufficient write-downs? The reason I ask is there are cases of other top management officials at other companies saying they were finished and then other quarters, they had big writedowns again." Michael Mayo, an analyst at Deutsche Bank, presses Dick Fuld, chief executive of Lehman Brothers, about the bank’s calculations of its subprime and illiquid assets during a conference call on Monday.
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