The Finance Owl

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Lehman Anniversary: A Time for Reflection?

Posted by theaccountant September - 14 - 2009 - Monday

Lehman BrothersCan you believe it? It is one year since the dramatic news headlines surrounding the collapse of one of the largest US banks. The Lehman banking empire fell apart one year ago and it is certainly worth taking stock of where the banking industry stands today.

Barclays Bank will probably be reflecting on the events of the last twelve months, which as a result of the collapse of the Lehman bank, resulted in Barclays taking over the a small investment banking piece of the insolvent bank. A year ago there was huge and understandable panic about the likelihood of a depression.

Today President Obama has been reflecting and discussing the financial situation, claifying how the actions that the various governments took over the past year have helped to avoid a deep depression. Is this really the case? Have these governments really saved the day?

Even if we can give the governments credit for helping to save us from a deep depression, should we be blaming them and not the banks for the situation arising in the first place? Some analysts would argue that the financial banking disaster may have arisen as a result of over enthusiastic deregulation. If this is true, what should we really be reflecting about on the anniversary of the Lehman banking collapse headlines?

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10 Responses to “Lehman Anniversary: A Time for Reflection?”

  1. Finance Man says:

    It is probably too early to say who is to blame, MBA students will be studying this case study in 100 years!!