C why was lehman brothers allowed to fail should it

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c. Why was Lehman Brothers allowed to fail? Should it have been allowed to fail? Paulson pushed Lehman's CEO Dick Fuld to find a buyer for his ailing company. But no company would buy Lehman unless the government offered a deal similar to the one Bear Stearns had received. Paulson refused, and Lehman Brothers declared bankruptcy. It shouldn’t happen. Lehman Brothers was one of the biggest investment banks around the world, and it had lots of overseas offices, and the bankruptcy laws are different from the United States ones, so when Lehman Brothers announced Bankruptcy, its overseas offices were cleared out immediately. It triggered the largest global financial crisis since the Great Depression. d. What were the effects of the Lehman Brothers collapse? The Dow Jones closed down just over 500 points (−4.4%) on September 15, 2008, at the time the largest drop by points in a single day since the days following the attacks on September 11, 2001. And systematical risk became reality and hit all financial institutes,
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and it frozen the credit market and also caused lots of problems of other big companies like AIG and Merrill Lynch. And caused a chain effect that strike the whole world financial market. 2. To briefly learn about the history of money, go to http://minneapolisfed.org and search for “Money History”. http://www.minneapolisfed.org/community_education/teacher/money.cfm To navigate: go to www.minneapolisfed.org click on Community and Education click on Teaching Aids
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