This case details the desperate negotiations in September of 2008 to stop the failure of the New York investment bank Lehman Brothers. Following the fall of the U.S. subprime mortgage market in February of 2007, a decline in the global financial markets began to accelerate. Lehman Brothers, heavily subjected to the U.S. subprime and commercial real estate markets, began to experience rising amounts of depression. Seeking a merger to save the firm, Chairman of the Board and Chief Executive Officer Richard "Dick" Fuld began to actively seek a buyer for the firm. Rebuffed by several potential suitors, Fuld instructed his attorney to approach Bank of America about a deal. Dialogues between Lehman Brothers and Bank of America ensued and were supported by U.S. government officials. Discussions between Lehman and Bank of America failed.
After conversations with Barclays Bank about a bid for Lehman also procrastinated, Dick Fuld was isolated from the conversation and U.S. government officials started to directly manage the discussions regarding the fate of Lehman Brothers. In a critical instant, U.K. fiscal authorities balked at a proposed deal to save Lehman. These discussions were being monitored by the Lehman Brothers board of directors and met four times during the weekend of September 13th and 14th. Amid the fourth meeting, a U.S. government official presented the board and declared that a Lehman Brothers insolvency would be in the best interest of the nation.
PUBLICATION DATE: November 01, 2012 PRODUCT #: NA0176-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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