History of Lehman Brothers

Bankruptcy of Lehman Brothers: Causes, Impact & Reasons

Bankruptcy of Lehman Brothers: Causes, Impact & Reasons

The bankruptcy of Lehman Brothers was one of the most striking of the global financial crisis that began in 2008. In fact, the collapse of this bank is considered, by many analysts, as the starting point of the crisis.

However, other banks had already fallen during 2007, although it is true that their size was smaller. One of the most important characteristics of this bankruptcy was that, contrary to what was done in other cases, such as Northern Rock in the United Kingdom, or Bear Stearns in the United States of America, the governments did not allocate public money to rescue the entity from the collapse.