Lehman Bankruptcy
The Wall Street investment services firm Lehman Brothers filed for Chapter 11 bankruptcy protection the morning of September 15, 2008, after an eleventh-hour deal from Bank of America to buy the company's assets fell through. Bank of America instead bought Merrill Lynch. Facing huge losses due to the subprime mortgage crisis, the future of the 158-year-old institution is in doubt. The company's subsidiaries were not included in the bankruptcy filing and will continue to operate normally.1
Fast Facts
- Lehman Brothers founded in 1850
- Lehman Brothers' failure could cause a "chain reaction" among investment institutions2
- Filed for Chapter 11 bankruptcy
- Subsidiaries Neuberger Berman LLC and Lehman Brothers Asset Management not currently affected by bankruptcy1
Barclays Buy Up Assets
On September 16, Barclays bank made a deal to buy up certain assets from Lehman Brothers after the bank's collapse. Barclays had previously backed out of a deal to buy the investment bank lock, stock and barrel. Details weren't immediately available although people close to the deal said the assets would relate to Lehman's US broker-dealer operations.3
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Merrill Lynch Bank of America | Bank of America | Merrill Lynch | Fannie And Freddie Bailout | Bear Stearns | Lehman Brothers | Chapter 11 Bankruptcy | Black Monday 2008 | Constellation Energy | Smith Barney Login Error | Richard Fuld | National Debt Clock | Andrew Lahde
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