Lehman Brothers Holdings Inc., commonly known as Lehman Brothers, was a financial services firm serving the globe. It was the fourth largest investment bank in the United States and offered various services such as investment banking, equity, fixed income sales and trading, private banking, investment management and market research. It was founded in 1850 by the Lehman brothers, Henry, Emmanuel and Mayer. The headquarters of Lehman Brothers was in New York City. The company declared bankruptcy in 2008 and made history as the largest bankruptcy filing in United States History.
When did Lehman Brothers collapse?
Lehman Brothers officially filed for bankruptcy at 1:45am on September 15, 2008. The company was unable to keep operating after the loss of most of its clientele, devastating losses in its stock value and the devaluation of its assets. Lehman Brothers was delisted from the New York Stock Exchange on September 17, 2008. After the shock announcement other financial companies agreed to take over and buy out different divisions of the company. Barclays took control of Lehman’s North American investment banking and trading divisions and in the deal secured the Lehman Brothers New York headquarters building. On October 13, 2008 Nomura Holdings acquired Lehman Brothers Asia-Pacific franchises and the investment banking and equities businesses in Europe and the Middle East. On December 3, 2008, the investment management business was sold to two private firms Bain Capital Partners and Hellman & Friedman with creditors still holding stakes in the business.
The collapse of Lehman Brothers played a hand in the ensuing global financial crisis. After the company filed for bankruptcy the markets responded with the largest ever drop in the Dow. This greatly contributed to the financial unrest and a general mistrust in the global financial markets.