B NAVEEN REDDY (0911A09)

U V VASUDEVA RAO (0911A18)

K CHEERANJEEVI (0911A22)
M VEERASHANKAR REDDY (0911A25)
 Henry Lehman and his brothers Emanuel and Mayer
 cotton trading company
 1899, it underwrote its first public offering
•In 2003 and 2004, acquisition of five mortgage lenders
•Irvine, California-based subprime lender BNC Mortgage
•Aurora Loan Services, which specialized in Alt-A loans (a notch above subprime,
to more-creditworthy borrowers who do not provide full documentation for their
assets)
It was one of the most exposed banks to the US sub-prime mortgage market. It did not
give out mortgages to ordinary American citizens. Rather, it bought up billions of dollars
worth of These loans from US banks, re-packaged them, and sold them on to global.

It also invested heavily in property, both commercial and residential. With the US housing
market in free-fall these re-packaged loans and its property portfolio have plummeted in
value
•In August 2007 with the failure of two Bear Stearns hedge funds, Lehman’s stock fell sharply
• BNC had 23 offices in eight states of which all were closed
•It also closed offices of Alt-A lender Aurora in three states
•The firm was stuck with the loans, which they had aimed to package and sell, when the
leveraged buyout market froze in the second half of 2007
•Heading towards the Weekend of September 14
•On March 17, 2008, following the near collapse of Bear Stearns - the second-
largest underwriter of mortgage-backed securities - Lehman shares fell as much
as 48%
•The stock should plunge 77% in the first week of September 2008
•By far the largest corporate bankruptcy in history, listing a total of $639 billion
in assets, $613 billion in bank debt and $155 billion in bond debt
Lehman does not have any High Street branches, ordinary savers or mortgage customers.
However, its collapse will have profound implications for people around the world – and not
just for its 25,000 staff, 5,000 of them in the UK who are almost certainly out of a job.
Crucially, the US's central bank, the Federal Reserve has refused to step in to rescue the firm,
even though it bailed out Bear Stearns, Fannie Mae and Freddie Mac earlier . This has rattled
Wall Street and the City as investors realize that others could be allowed to go to the wall.
As a result, share prices have fallen heavily on stock markets around the world
•On September 22, Nomura declared the acquisition of Lehman Brothers’ franchise
in the Asia Pacific region, including Japan and Australia
•On September 23, Nomura acquired Lehman’s European and Middle Eastern
equities and investment banking divisions
•On October 14, Nomura completely integrated the acquisition of three companies
in Lehman’s eleven services platform in India which are LB Services India, LB
Financial Services (India), and LB Structured Financial Services
Yes. Merrill Lynch, one of the most venerable Wall Street firms, has been bought out by the
Bank of America to save it going under. AIG, the world's largest insurance company is also
running short of funds, it is understood. It is almost certain another major financial institution
will collapse