Lehman Brothers Case Study

Lehman Brothers Incorporation was the forth-biggest investment bank in the United State of America before they were closing down their business. And it is very famous and even the Hollywood, they put their company name to their movies such as “Despicable Me” which is one of the most famous animated movie and filmed about the father-daughters. In that movie, under the name of Bank of Evil, they put Formerly Lehman Brothers. Not only this movie, but also other movies like Margin Call, Too Big to Fail and Horrible Bosses. The British also made the film which named “The Last Day of Lehman Brothers”.

1.1 History

Lehman Brothers Company was founded in 1844, a 23-year-old young man who was named Henry Lehman migrated to United State of America from Rimper, Bavaria and he settled in Montgomery, Alabama. After that he opened a dry-goods store which was called H.Lehman. In 1847, his brother Emanuel Lehman came to him and the firm become H. Lehman and Bro. In 1850, their name were changed again because their youngest brother who called Mayer Lehman arrived and they became Lehman Brothers.

During the years of 1850, in United State, cotton was one of the important corps so they trade the cotton and it became their second business. After that their business grew. In 1855, Henry dead from yellow fever and the remaining two brothers continued their business. In 1858, they moved to their cotton trading from south to New York City. And the Lehmans opened their branch office in Manhatten and Emanuel Lehman relocated and run the office.

In 1870, Lehman Brothers helped to found the New York Cotton Exchange. In 1883, the Lehman Brothers became the member of the Coffee Exchange and in 1887, they became the member of the New York Sto...

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... and try to make the money grow and grow, finally the money will eat you. I think the Lehman Brothers case is just like that. Because the power of the money is so big and the people are not good enough to handle it. So they money is just keep growing inside and when the good people came in they just too late to control it. Actually nobody in that company was cheating and they just cannot control it.

5.1 Conclusion

In conclusion, even the start of the company was good and reliable because it can only join the family members but since the business was more and more grew, only the family members was not enough for the men power or the work force. So non-family members joined the corporation and the business changed into Limited Liability Company from partnership. And as the business is too big, the people cannot control it for five years and after that it collapsed.