US Investment Bank Lehman Brothers Holding Inc said that it plans to file for Chapter 11, i.e. Bankruptcy. But the Chapter 11 filing will not include its Broker –Dealer operations & other units, including Neuberger Berman. Recently, Lehman Brothers were facing utmost difficulties in tiding over situations relating to Mortgages & Asset Backed Securities of $ 46 Billion, Low Credit Rating, problems in raising Capital and last but not the least lack of Investors confidence. Lehman Brothers, which stood firm in the financial crisis of World Wars, succumbed to the Global Credit Crunch. European Share Prices are bound to go down following Lehman’s Bankruptcy. US Dollars went down 2.3 % to 105Yen, from 107.86 late on 12.09.2008. While the Euro dropped to 152.26 Yen from 153.43.To curb the situation that may arise from collapse of Lehman, the Federal Reserve launched a series of emergency measures on 14.09.2008 to calm down the trading discrepancies in the Financial Markets. Nearly 3000 Employees of Lehman Brothers in Asia, excluding the Indian Back office, are waiting anxiously & nervously to hear their fate. A Lehman executive, in Singapore, who did not want to disclose his identity, told Reuters over telephone “I guess we will have to wait for the marching orders.”Contributed By:
Prof. Jayanta Mitra
(Globsyn Business School)
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