1. Too Big to Fail
http://www.dailymotion.com/video/xiqkp9_too-big-to-fail-trailer-4_shortfilms
2.
3. The Lehman Brothers
• In 1844, Henry Lehman immigrated from Germany to Montgomery, Alabama where he established a small
shop selling groceries, dry goods, and utensils to the local cotton farmers.
• By 1850, his two brothers, Emanuel and Mayer joined the business, and they named it Lehman Brothers.
• After Henry Lehman's death in 1855 at the age of 33, the two younger brothers headed the firm for the next
four decades.
• During their tenure and continued until the 1920s, the policy was family members including brothers, and
cousins, and sons only were permitted as partners.
5. Sales & Trading
• In 1887, Lehman became a member of the New York Stock Exchange.
• From 1906-1926, Emanuel's son, Philip Lehman, and Henry Goldman, the principal partner in the firm
“Goldman, Sachs”, formed an alliance to fund the emerging retail industry.
• The two firms jointly underwrote securities issues for Sears, Roebuck & Co., F.W. Woolworth Co., May
Department Stores., Gimbel Brothers, Inc., and R.H. Macy & Co.
• As the motion picture industry developed in the 1930s, Lehman Brothers helped fund Radio-Keith-Orpheum
(RKO), Paramount Pictures, and 20th Century Fox.
• Helped fund the Radio Corporation of American (RCA) in the expanding communications industry.
• With the arrival of the electronic and computer technology, Lehman underwrote Digital Equipment’s first
public offering in the 1950s.
6. Fearsome Foursome
• In 1962, Lehman forms an association nicknamed the “Fearsome Foursome” with
Salomon Brothers, Merrill Lynch, and Blyth and Company that challenges major
firms for underwriting business.
7. Shearson Lehman American Express
• In 1984, American Express acquired Lehman Brothers and merged it with its
retail brokerage Shearson to form Shearson Lehman Brothers.
• In 1993, the firm was spun off and once again became known as Lehman
Brothers.
8. The New Millennium
• In 2000, Lehman celebrated its 150th anniversary.
• The company's World Trade Center offices were destroyed by terrorist attacks on
September 11, 2001.
• And moved to its new global headquarters in midtown Manhattan in 2002.
10. Lehman Brothers Holdings
• Fourth largest investment bank in the US behind Goldman Sachs, Morgan
Stanley, and Merrill Lynch.
• Business included sales and trading in equity and fixed-income, investment
management, treasury, research, private equity and private banking.
• 25,000 employees worldwide with $639 billion in asset and $619 billion in debt.
13. The Collapse of Lehman Brothers
• On September 15, 2008 Lehman filed for Chapter 11 bankruptcy protection.
• It’s the largest in US history and have contributed to the global financial crisis.
• Its assets far surpassed those of previous bankruptcy such as WorldCom and Enron.
• Largest victim of the U.S. subprime mortgage catastrophe that swept through the global financial markets in 2008.
14.
15. Purchase Agreement
Purchased Lehman’s North American Investment
Banking and Trading Divisions
Acquired Lehman’s Asia-Pacific region, and equities
businesses in Europe and the Middle East
16. Media
•The Big Short Trailer (2015) Paramount Pictures‐
https://www.youtube.com/watch?v=vgqG3ITMv1Q
•The case against Lehman Brothers
https://www.youtube.com/watch?v=3sm-XGVca3c
•Wall Street Crash of 2008: CNBC Sep 14, 2008 7-9pm PST (Lehman bankruptcy, BofA buys
Merrill)
https://www.youtube.com/watch?v=JZXvputThjs
•Global Financial Meltdown (Must See. Full doc)
https://www.youtube.com/watch?v=l4XfNiqwQDo
17. The End
• Questions & Answers
• Comments
• Presentations By
Steven Yang
Lehman Brothers Global Corporate Real Estate – Finance
Senior Financial Analyst / Consultant
2007-2008
