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Failure of Lehman Brothers

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  • Mahmoud Mofid Abdul Karim

Abstract

This study assessed the failure of the Lehman brothers. The aim was to evaluate the causes of Lehman's bankruptcy and determine the strategies that could prevent bankruptcy in the banking sector going forward. Findings indicated a close relationship between regulations and the actions of management. In particular, the failure of Lehman showed that regulation and supervision are critical to the success and continuity of the banking sector. The analysis also showed that the demise of Lehman was a result of complex factors. These included unethical management practices, deregulation, excessive risk-taking, poor corporate governance structure, fraud, and lack of a robust ethics code.

Suggested Citation

  • Mahmoud Mofid Abdul Karim, 2021. "Failure of Lehman Brothers," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 10(4), pages 1-1.
    • Handle: RePEc:spt:fininv:v:10:y:2021:i:4:f:10_4_1
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    References listed on IDEAS

    as
    1. Grant Kirkpatrick, 2009. "The corporate governance lessons from the financial crisis," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2009(1), pages 61-87.
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