One Year After the Lehman Brothers Bankruptcy
September 15, 2008 was the day the Lehman Brothers filed for Chapter 11 bankruptcy . This move came after many meetings with banks, financial institutions and other organizations which were trying to resolve the major financial crisis the Lehman Brothers were facing. However, the problem has reached a point that bankruptcy was the ultimate direction to follow.
The Lehman Brothers’ bankruptcy filing put a mark on history as one of the largest bankruptcy filings in the United States with over $600 billion in bank debt, $155 billion in bond debt and $639 billion worth of assets.
The chapter 11 bankruptcy filing of Lehman Brothers was feared to create a chain reaction in the financial industry. If a giant company was not able to raise itself from bad debts, other small and large investments were threatened that the same thing may happen to them. Many companies immediately reviewed the effects of the Lehman Brothers bankruptcy to their corresponding businesses. There was a need to assess a company’s sustaining power if it will surpass the financial crisis that is extending so fast.
To date, a lot of government bail out programs has been provided to troubled companies. Many bankruptcy filings were prevented from happening. Although most financial analysts predict that the financial crisis is far from over. There is much to be done in order to overhaul the systems that lead to the economic global recession.
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