Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 14 July 2009
Length: 13 pages
Data source: Published sources
Abstract
This case examines the causes and consequences of the Lehman Brothers bankruptcy during one of the most fascinating weekends in financial history. It''s about the commerical paper market, a major funding market served by Lehman Brothers, and the events that led to ''breaking the buck'' on money market funds. It also examines the CDS market where Lehman was such a big player, the potential impact that CDSs had on the crisis, and the notion and validity of the too-big-to-fail hypothesis.
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Abstract
This case examines the causes and consequences of the Lehman Brothers bankruptcy during one of the most fascinating weekends in financial history. It''s about the commerical paper market, a major funding market served by Lehman Brothers, and the events that led to ''breaking the buck'' on money market funds. It also examines the CDS market where Lehman was such a big player, the potential impact that CDSs had on the crisis, and the notion and validity of the too-big-to-fail hypothesis.