Company Background : Lehman Brothers Holdings Inc. was a firm specialized in the provision of global financial services. It was founded in Montgomery, Alabama, in the United States of America. The company had headquarters in New York City, New York, in the U.S. It ceased operations in 2008. The founders were: Henry Lehman, Emmanuel Lehman and Mayer Lehman. What Happened? Lehman Brothers hid over $50 billion in loans disguised as sales. They allegedly sold toxic assets [1] to Cayman Island Banks with the understanding that they would eventually be rebought. How they were caught : Their bankruptcy led to the discovery of the fraud. They filed for bankruptcy in 2008, which is the largest bankruptcy ever recorded. Their case was larger than that of Enron, Washington Mutual, WorldCom and GM combined. On September 15, 2008, Lehman brothers filed for Chapter 11 bankruptcy protection (Montgomery, n.d.) . Their bankruptcy filing came in as a blow to the financial indu...
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