Finance Assignment 2022

Running head: FINANCE
FINANCE
Name of the student:
Name of the university:
Author Note:

FINANCE1
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Lehman Brothers Porter five forces.......................................................................................3
Lehman Brothers fall SWOT analysis...................................................................................3
Managerial performance and stockholders analysis..............................................................4
Valuation and ratio of Lehman Brothers................................................................................5
Conclusion..................................................................................................................................6

FINANCE2
Introduction:
The assignment deals with the company which is the Lehman Brother holdings Inc. is
referred to as the global financial service firm. In the financial year 2008, Lehman is referred
to as the fourth largest investment bank company in the United States. The products of the
bank are equity and trading, investment banking, private equity and private banking. Due to
significant financial crisis in the year 2008, the company went bankrupt. Lehman Brother was
known for the investment banking and equity business in the Middle East and Europe. With
the amount of $639 billion in assets and $619 in equity the Lehman Brother bankruptcy was
filled in the history after the scam of the Enron and WorldCom.
The commencement of such huge mistake started in between the year 2003 and 2004
when Lehman acquired five mortgage lenders which further includes the subprime lenders of
the Aurora loan Services and BNC mortgages. Then a colossal problem took place within the
market which is subprime mortgage loan was provided a poor credit rating. There is actually
less chance that the subprime borrowers will pay of to the lenders at higher rate of interest.
This is the actual reason behind such crash in the US market in the year 2018 consisting
artificially low rates in the first couple of years. The problem took place in United States in
the subprime markets which further spread to rest of the housing market or rather hurting the
economy of US at the same time.