Lehman Brothers
Dead1847–2008
| Industry | Finance |
| Headquarters | New York, NY |
| Founded | 1847 |
| Died | 2008 |
| Peak employees | 26,200 |
| Peak revenue | $19.3B (2007) |
| Cause of death | Financial crisis |
Lehman Brothers started as a dry goods store in Montgomery, Alabama, founded by three Bavarian immigrant brothers. It grew into one of the most storied investment banks on Wall Street, surviving 158 years of American financial history.
In the 2000s, Lehman dove headfirst into subprime mortgage-backed securities and collateralized debt obligations. When the housing bubble burst, Lehman was holding $613 billion in debt. CEO Dick Fuld tried desperately to find a buyer. Bank of America chose Merrill Lynch instead. Barclays walked away. The federal government, which had just bailed out Bear Stearns, decided to let Lehman fail.
On September 15, 2008, Lehman filed the largest bankruptcy in American history. The Dow dropped 500 points. The global financial system seized. The resulting crisis wiped out $10 trillion in global market value and triggered the worst recession since the 1930s. Lehman became the face of the financial crisis and a permanent case study in systemic risk.
Timeline
Henry Lehman opens a dry goods store in Montgomery, Alabama
Brothers Emanuel and Mayer join; firm becomes Lehman Brothers
Opens office in New York, shifts to commodities trading
Spun off from American Express as independent firm
Begins aggressive expansion into mortgage-backed securities
Reports record revenue of $19.3 billion
Stock drops 73% in first half of year
Files Chapter 11 on September 15; largest bankruptcy in US history