Lehman Brothers goes the Bear Stern’s way – Is Bankrupt and History

Lehman Brothers goes the Bear Stern’s way – Is Bankrupt and History
1. Sub prime crises –history
2. Bear sterns, Fannie Mae and Freddie Mac
3. Richard Flud & O’Neal.
4. Merrill Lynch and AIG
5. Rumors of JP and City suffering equal sever losses.
6. Actual magnitude of the issue ($500 bn current write downs, expected around $ 1.5 trillion).
7. What it means of us in India? ( IIM B had 5 placements each form ML and LB)
“Sub prime crises”, the word I m sure will send a chill down many a spines. It all started with the subprime mortgage lending initiated by leading finance majors in the US and subsequently followed in Europe. Extremities in either direction are bad and this has been aptly justified by the current subprime crises. Interest rates as low as 0.5 % is unimaginable. Increased competition ensured that these banks have to innovate and come out with ( incomplete)