Accounting 2600-1 Case Project For this project, I choose the Lehman Brothers as my topic. 2008, a terrible year which can be written into the annals of history for global economy. In 2008, there were many kinds of companies that had to face a big deficit about their finance. Therefore, some companies have to go broke in the end of 2008. The biggest new was the Lehman Brothers announcing that it had already applied for bankruptcy protection at September 15th, 2008. This was a new flash which brought a big impact on global economy and directly made thousands of people lose their jobs. Of course, behind the end of Lehman Brothers, there are many lost artificial mistakes and unethical behaviours caused a financial crisis in 2008. First, Lehman Brothers was one of the best investment bank around the world. It had already existed for 150 years in the world. The share price of Lehman brothers still more than 60 dollars at the beginning of 2007. In the end of 2007, Lehman Brothers had found some serious problem on its financial situation which is a big deficit. Later in 2008, Lehman brothers' excutives had tried their best to save company or slow down the speed of increasing deficit. A report shows that "At the end of the second quarter of 2008, as Lehman was forced to announce a quarterly loss of $2.8 billion-resulting from a combination of write-downs on assets, sales of assets at losses, decreasing revenues, and losses on hedges-it sought to cushion the bad news by trumpeting that it had significantly reduced its net leverage ratio to less than 12.5, that it had reduced the net assets on its balance sheet by $60
billion, and that it had a strong and robust liquidity pool." (Anton R. Valukas) Which means Lehman Brothers got a chance to breathe a while in that time.
- Fall '14
- Accounting, Subprime mortgage crisis, Lehman Brothers