Lehman brothers liquidating
With no loans being made and the world's largest financial institutions under significant threat of failure, the global financial system was under threat of collapse. 12, 2008 to discuss an emergency liquidation of Lehman Brothers in an attempt to stabilize the markets.The Federal Reserve Bank of New York and several large investment U. The goal was to avoid a costly government bailout, such as the billion loan the government made to Bear Stearns in March 2008.As such, some say the firm had become a de-facto real estate hedge fund.When real estate values peaked and then began to falter in 2007-2008, Lehman Brothers became especially vulnerable.It provided investment banking, trading, investment management, private banking, research, brokerage, private equity and associated services.Lehman Brothers' failure placed the subprime mortgage crisis of 2007-2009 prominently into the public eye and presaged the deepening of the Great Recession.
It had on its books huge tranches of subprime and low-rated mortgage loans that it either could not sell or chose not to sell.
“The system to protect customer property worked, and that is good news for the former Lehman customers caught up in the bankruptcy,” Giddens said in the statement.
Lehman’s parent filed the largest Chapter 11 bankruptcy in history on September 15, 2008, with about 9 billion in assets.
Leftover money in the estate will go toward repaying roughly 12,000 non-customer general creditor claims.
It remains unclear how much money will be available to those customers.