On September 15, 2008, less than a year following the bank presented its largest profit ever, the world found it descending. With assets summing up to US$639 billion and obligations of US$613 billion, Lehman is considered the largest bankruptcy in history, when it comes to size of assets.
Lehman Brothers Crisis in Corporate Governance Case Study Solution
Some interesting questions were raised by the bankruptcy. The largest among them being: How could a large-sized business such as Lehman using a history of reporting enormous gains, become so weak that it had to file for bankruptcy? Certainly, the fiscal scenario in America had not become good, especially for all those firms which were into mortgage banking.
Lehman had some additional drawbacks. This case attempts to take care of a couple of such difficulties, one of these being the accountancy of its Repo 105 trades. The modus operandi of the company has been unveiled to show how to stay clean handed for years and it managed to hide its true financial state by using differences in the financial reporting system across the edges.
PUBLICATION DATE: May 04, 2011 PRODUCT #: W12977-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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