By
watching the last days of Lehman Brothers, the film is about the “last days of
Lehman Brothers” for three days from Friday, September 12 to Sunday, September 14,
2008. The main story is that US treasury Secretary Hank Paulson called several of
America’s largest investment bank CEOs to come up with an idea to save Lehman
Brothers in three days. While the Lehman Brothers CEO Dick Fuld was dying to
try to keep the bank, however, Lehman Brothers was unable to escape the fate of
collapse.
Facing the
company’s risk in 2007 and 2008, this is really bad enough that Fuld and his
flattering colleagues face repeated warnings, but always been blinded by his
arrogance eyes. The reason for the outbreak of the crisis is the Wall Street
investment bankers every day rash behavior. But we will find it very strange,
why the Fed and the Ministry of Finance does not save Lehman Brothers, when Lehman
Brothers was in a crisis, due to their company had too much junk assets, no
giants wanted to take acquisition, and also Barclays were cancelled because of
the UK’s board resolution institution. Investment bank is not owned by the Federal
Reserve, Lehman Brothers cannot get the Fed’s direct funds. Although the Fed
has provided that, in exceptional circumstances, if there is proof that a bank
is unable to find borrowers, the Fed can help the bank register capital, but in
advance is the bank to have sufficient assets to mortgage, it is clear that
Lehman's garbage assets do not meet this requirement.
On 2008 September
14, Sunday evening, Lehman Brothers filed for bankruptcy, the one who hundred
and fifty years of history of Wall Street investment bank collapsed , which is
widely regarded as the turning point of financial tsunami in 2008, this is the
biggest bankruptcy in US history, caused a great panic and the international
monetary market freeze.
In the
final, when always conceit of Dick Fuld finally accept the irrevocable reality,
makes me think of what ishikawa tetsuya said in “ How I under Caused the credit
crunch” : the real victim is not me, but who was not involved in the gamble but
ordinary being who not fear suffer.
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