Reason of Lehman Brothers bankruptcy?
Date: Mon, 09/29/2008 - 21:21
I will say it is the greed for supernormal profit that led this
I will say it is the greed for supernormal profit that led this giant to become banckrupt in 2008. But let me mention here that this institution of 158 years sailed safely during the 1930's Great Depression. Name of this supernormal greed is nothing but subprime lending. I hate this lending because it helps us to get possession of our own house (a dream come true) even if my credit is not upto the mark but snatches away our dream when we fail to repay its high interest rate.
This crooked financial practice of subprime lending back fired when the housing market collapsed due to glut in real estate.
Collapse of Lehman brothers is the fall out of subprime mortgage crisis.
