B NAVEEN REDDY (0911A09) U V VASUDEVA RAO (0911A18) K CHEERANJEEVI (0911A22) M VEERASHANKAR REDDY (0911A25

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it underwrote its first public offering . Henry Lehman and his brothers Emanuel and Mayer  cotton trading company  1899.

which specialized in Alt-A loans (a notch above subprime. California-based subprime lender BNC Mortgage ‡Aurora Loan Services. .to more-creditworthy borrowers who do not provide full documentation for their assets) ‡In 2003 and 2004. acquisition of five mortgage lenders ‡Irvine.

both commercial and residential. and sold them on to global. it bought up billions of dollars worth of These loans from US banks.It was one of the most exposed banks to the US sub-prime mortgage market. It also invested heavily in property. re-packaged them. With the US housing market in free-fall these re-packaged loans and its property portfolio have plummeted in value . It did not give out mortgages to ordinary American citizens. Rather.

which they had aimed to package and sell.‡In August 2007 with the failure of two Bear Stearns hedge funds. when the leveraged buyout market froze in the second half of 2007 . 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.

largest underwriter of mortgage-backed securities . 2008.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.the second- . listing a total of $639 billion in assets. $613 billion in bank debt and $155 billion in bond debt ‡Heading towards the Weekend of September 14 ‡On March 17. following the near collapse of Bear Stearns .

As a result. ordinary savers or mortgage customers. 5. Crucially. 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.000 staff. the US's central bank. its collapse will have profound implications for people around the world and not just for its 25. share prices have fallen heavily on stock markets around the world .Lehman does not have any High Street branches.000 of them in the UK who are almost certainly out of a job. the Federal Reserve has refused to step in to rescue the firm. However.

LB Financial Services (India). Nomura declared the acquisition of Lehman Brothers franchise in the Asia Pacific region. including Japan and Australia ‡On September 23. Nomura completely integrated the acquisition of three companies in Lehman s eleven services platform in India which are LB Services India.‡On September 22. and LB Structured Financial Services . Nomura acquired Lehman s European and Middle Eastern equities and investment banking divisions ‡On October 14.

AIG. has been bought out by the Bank of America to save it going under. the world's largest insurance company is also running short of funds. Merrill Lynch. one of the most venerable Wall Street firms.Yes. It is almost certain another major financial institution will collapse . it is understood.

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