I want you to read Leman’s own self description.
Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world.
They seem fairly well diversified, as I’m sure any investment broker/banker would say is the wise and safe thing to do on Wall-Street. So I pose this question. Why would they make the move to actually consolidate their interests into such a volatile side of the market e.g. derivatives, namely residential mortgages, and not remain diversified? Did the owners sell off the worthwhile portions of the company for personal profit and purposely implode the “front”? Is this why Lehman Bros. didn’t get bailed out, they didn’t want it?
How can you say it’s rational for such a wealthy company, with over 100 years experience in the market to place so very much of their company into what they had to know were bad loans? That doesn’t seem rational at all.
Ok Thomas can you really call walking away from a failed company with 310 million dollars a sacrifice? Still no one is giving me a decent reason why the Lehman Bros. would make such a freshman mistake when clearly they were seniors.
I always said “Trickle Down” was a misnomer when it was clearly a shop vac, ******* in wealth and blowing out hot air.
