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Fall of Lehman Brothers – reasons why the failure could not be stopped

Arif Ahmed

South Asian Management Technologies Foundation

August, 2011

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Contents
Abstract ............................................................................................................................................ 3 Background....................................................................................................................................... 4 Genesis of the Problem .................................................................................................................... 5 The Abettors of Failure..................................................................................................................... 9 Controls that failed ......................................................................................................................... 12 Preventing another Lehman........................................................................................................... 16 Conclusion ...................................................................................................................................... 19 Reference ....................................................................................................................................... 22

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Abstract Failure of Lehman Brothers marks an important point of modern economic history. In a matter of eight months a successful and respected financial institution filed for bankruptcy creating a ripple effect across the banking world spread over various political boundaries. This paper examines the genesis of the risk and finds that it was well within the limits of executives and management of Lehman Brother to stop the complete annihilation. It was possible to sustain despite suffering serious damages if Lehman Brothers

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