Lehman Brothers: How this Bank started the Economic Crisis of 2008 | Inside the Storm | FD Finance
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- čas přidán 1. 06. 2024
- Rise and Fall of Lehman Brothers | FD Finance
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In September 2008, the collapse of Lehman Brothers was the biggest bankruptcy in history that sent shockwaves throughout the global financial market. Inside The Storm: Lessons from the Boardroom tells the story of what went wrong within America’s oldest investment bank and how it devastated even the common people living in Asia.
Big businesses rise and fall every day. This documentary series follows the lifecycle of four of the biggest industry players, and reveals intimate details on how these companies were run. Supplemented by interviews from industry players and professionals from around the world, this series tells the story of how these titans of business did not heed the warning bells, and fell from their ivory towers.
Inside The Storm: Lessons From The Boardroom documents the life and death of major companies that the world assumed would last forever. Eastman Kodak, the camera and film manufacturer that made photography available for common man, Kingfisher Airlines, the progeny of billionaire liquor baron Vijay Mallya, Barings Bank, hailed as Britain’s oldest merchant bank and the Queen’s bank, and Lehman Brothers, an investment bank that survived two World Wars and the Great Depression.
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It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with these banks is only the beginning of what will happen if nothing is done to address the current situation.
In my opinion, some of the banks was attempting to restructure their bond portfolio, which involved selling their low-yielding bonds despite the potential loss, and compensating for it by buying higher-interest-rate bonds on the open market.
Despite the economy's resilience thus far, the banks scenario cautions that the effects of Federal Reserve rate hikes persist. During such periods, investors must remain alert to anticipate what comes next. It is not necessary to act on every prediction, so I recommend seeking the guidance of a financial advisor, which has been my go-to advice for some time now.
I'm intrigued by your experience. Could you possibly recommend a trustworthy advisor you've consulted with?
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
It is a superb video giving viewers a throwback to the what triggered the 2008 financial crash. Hedge fund investors were piling an astronomical amount of money into investment banks' bubbles which culminated in 2008.
These companies never should have had the ability to make so much risk that the entire global financial system was put into danger. Rich CEOs get to play at this game and it's the average person who loses their home, their job, their savings.
It’s rich ⚪️men who don’t give a flying efff.
It’s even worse now. Archegos was a small fish in a vast ocean. Brooksley Born should have been listened to.
If our government wants our trust back they need to bank rup all ceos take money back sadly will never happen and sadly the government will never regain our trust
Oh Fulds, the man who showed no remorse at his congressional hearing.
Yet he still got all his money. What a joke that none of them went to prison. Again, shows you if you donate enough money to BOTH parties, you’re protected.
There should have been zero bailouts
Unfortunately the lack of credit from banks was destroying businesses across the world. Without a bailout (which I also hated), we would have been in a depression within months (like 1929). The bailout was bad but the lack of prosecution of companies like the credit rating companies, Lehman and Washington Mutual was absolutely a crime. The US did make its money back with a profit from AIG but they had to sell off a large portion of their company.
Failure must be allowed to occur… to not allow it to happen makes the next cycle that much worse
The bailout was fine. But the lack of accountability for the big banks and stricter regulations and oversight that should have been immediately attached to it was terrible.
I agree 👍
The only people who would've actually suffered from that are us. The regular folks. Businessess, everybody who isn't rich. Not the CEOs. They bailed us out.
Actually, the deflation of realty assets caused the crisis. Every bank had to record unrealized losses that made them less and less liquid. Everyone thought mortgages must be safe because it’s the bedrock of the so-called American Dream, but they started making derivatives based on this idea without looking at the default numbers. Lehmann just became the sacrificial lamb because it was so badly leveraged, but if not them then it wouldve been Meryll Lynch or Citibank and the contagion effect would’ve been more or less the same. No players messed up in 2008, the game itself was rotten…
Yes, yes, and yes. When low interest ARM's were being advertised on every TV station, billboard, and internet site in the early to mid 2000's I turned to a friend and said "This is not going to end well." When the crash happened she turned to me and said "You were right, you predicted this years ago." I replied "I'm no financial genius but I do know human nature." Greed and the promise of the American Dream to people without the means to sustain a huge increase in interest rates leads to disaster. I cautioned a couple of people about the ARM's but was dismissed.
@@kk33613 The other side of the issue with low interest is builders constructed bigger and bigger houses, ramping up home values.
*real assets
@@hannah60000 I’m aware. The first blip on the screen was in Iceland. I’m not so America-centric. I don’t watch much American TV or news. I mostly watch European, British, and Australian TV shows and news.
I still called it though.
BTW what happened to your previous reply to me? Did you delete it? Maybe decide you don’t know me well enough to call me out? I’ll wait for your response.
Of course if you cannot afford repayments and had to sell, prices will fall.
I believe it's called supply & demand.
Infantile analysis
Interesting...
He brought the most needed confidence and alone saved the world.
Imagine if you had shorted Lehman Brothers.
People did and made billions of the back of it
9:23 It is probably better if they left the intro out for Chris. Being an advisor for those banks is not something you want to boast about given that those banks needed a bailout
All the banking sharks smelt blood in the water and went into a feeding frenzy.
In the good time, you can ask a dog to invest your money and you will still make a profit
😂
So true
This isn't that tho
@@tomlxyzit is exactly that.. over leverage on speculation.. it's okay when things are going up and up but when things goes down the drain, unrealized losses becomes realize
Great documentary! I lived though it myself!
I got out of the military in 2008. I got out of the Marines into an economy in utter chaos.
These companies are greedy.
They’ve always be greedy. Always will. What changed was deregulation.
The corporate guys didn’t care about the common man. The same is still going on, even congressional leaders don’t care
It's called Capitalism
@@kmakiable im not sure capitalism is truly to blame, more like corruption and greed.
@@chenzen4915 Corruption and Greed are inherent in Capitalism.
@@kmakiable Greed and Corruption are inherent in every form of government, the only commonality is people in power taking advantage of everything.
All this happened when Houston was hit with Hurricane Ike. I had no electricity for 3 weeks. We had no idea what was going on and at that time, we would not have cared.
Most complex and costly bankruptcy ever
Excelente video
Too many people were overstating their income on their loan applications, and collectively they all defaulted.
Ok, the "banks/lenders" on average collected 2-3 years worth of mortgage payments from those who defaulted. So, the "banks/lenders" got the house back that in the worst case scenario worth the same as it was but most of the time it worth more than what it was 2-3 years ago. So what's the problem? That's like having a monthly payment plan when selling a classic car to someone. Imagine after receiving a few years of payments from someone and then getting the car back and selling it again to some one for the same amount as you did a few years ago? I live in the SF bay area and property has never ever never went down in price at anytime.
The 2008 crisis was not Lehman Brothers's mistake, I think it was actually one of the best American banks at the time. They were the first to discover irregularities and began to clear themselves of toxic assets - it was done very poorly and chaotically. The bank did not receive state aid like other banks and went bankrupt. Anyway, this kind of thing will happen in the USA in the future.
I lost my house and job. 😭
Buenazo! Gracias
In a nutshell, people got greedy.
Was it possible to see the underlying loans before purchasing these MBS's? It seems that some people knew what was in them according to the Big Short.
It probably was, but it would involve going through thousands of mortgage contracts and doing a background check on all the borrowers. A task that even the rating agencies avoided.
too much trust in the system,
I was a homeowner during That time, i couldn't figure out how the housing market was booming during a recession.
It turned out to be a house of cards
So glad I had a paid off house at that time!
Greed and no accountability = Failure
Ppl blame the printing of money for our economic problem. The fact is, the whole loan and credit system is the true problem. Right now, it's what's causing our unbearable unaffordable inflation.
What's the point of earning a lot of money?!?! You can only buy THE SAME THINGS THAT ARE AVAILABLE TO EVERYONE ELSE!
It was the canary, not the cause,
It is still hard for me to believe that books with that many figures went to zero without anyone knowing before it was too late.
those CDO's were rated AAA
Yes hard to believe that making outlandish commissions for absolutely no work would make you blind😂
I tink tay have tall ready torgotten what tappened 👍🏻
You either be humble or get humbled. Ego needs to be in check in order to be able to make decisions and lead.
Criminals, the people baled out. The rest of us serfs declare
Bankruptcy
figs for ericka
haos bank of america
challengers error
still on the fiddle
Now is the opposite house prices just go up😂
It's all by design for a small group of people having control of a country, organization, or institution,is oligarchy not democracy
NYCB WAs 60% down
So money really has no value to some and has plenty value to others
The credit system should have never existed. I said what i said.
JAJAJAJ Si la competencia era la FED si por sus políticas es que comienzo la crisis
NO VEO A MICHAEL BURRY EN EL DOCUMENTAL .
Community Reinvestment Act.
❤
Silicon Valley banks
You know if we riot there's no police to break it up. . . .just volunteers 🤔🤔
Why save Lehmen? Cuz they saved Bear.
JP Morgan saved Bear
@@thelorelei1884 Yes, I know. I was referring to the government.
Can you do video without music ?
No
THE SAME PLAYERS ARE IN PLACE; THIS WILL HAPPEN AGAIN BECAUSE OF THESE FINANCIAL GENIUSES.
What a name.
Nah, lehman didn’t start it. They were the systems worst abuser however.
This behavior is just human nature, we can't help ourselves if the opportunity presents itself.
$42,089.22c/ce
2024: It’s about to happen again but much worse than 2008.
Why do you think so?
@@AdrianRomeroJrI know so. Because I was watching housing closely stating in late 90's and there was really weird things happening out of the norm. Hen 2008 GFC happened and it showed just how corrupt thongs had gotten. And did they didn’t fix it, they've made it much worse. You only have to look at the numbers before 2008 and compare them to today to get an idea of just how much worse.
@@AdrianRomeroJr Because the economy is artificial from reckless gov spending and subsidies. The only reason the stock market is doing so well is from all that cash flowing into the system propping up corporate profits. Meanwhile people have the highest cost of living to income ration since the great depression. This is a nasty bubble we are in, and when it bursts, ouch.
@@mb9326 nice bro, you’re well informed.
@@AdrianRomeroJr I'm a technician, special educator, and a behavior analysis student, I live off data.
Highly educated sociopaths. Anybody working in banking and finance should be ashamed of themselves. A tragedy that is the banking will not be here in the next 100 years
Looks like a giant ponzi scheme to me
I was a Senior Vice President at Lehman Brothers. It was fantastic to work there.
Its fun to literally print money
@@yasirpanezai5690 absolutely!
You wish.
@@RUHappyATM I was the SVP of balance sheet investments. Anyway, enough of communicating with you.
@@user-ot8zp7dc5u
Right, new account, started last year.
Investir moved on that's such a a light way of putting way borderline irresponsible
It was a hacker who made it happen
no son 500 sólo son 250 millones 😂
Creates no service or product, just makes money😅. Rotten people keeping a rotten type of business open.
When they got addicted to an Iraq…. Which was great prior to that.
Criminals!
documental basura, jamas mencionaron al estado como unico responsable
This people should be in prison.
We must be doing ok now for Jeff Bezos to be making $1.5B every two weeks. Yes that is a “B” for billion. Can you imagine getting a paycheck like that?!? I feel like he could’ve saved the world with just 2 or 3 of his paychecks.
That’s not his job to save America from their silly mistakes.
Left and Go to work for the opposition - THAT MIND I left and work for the MASTER .
Obama came and saved everyone.
He (President Barack Obama) had no choice 💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰
Lol good one
Yeah right by taking the villagers money
Yet he came in and didn’t indict anyone.
@tcurtis1206 perhaps it's because they gave money to his election campaign
The big short
Was about to say this!
Gee I wonder what religion they were? Nobody nose.
Sub prime loans were responsible for the economic crisis, not Lehman
Lehman was fairly heavily involved in the sub prime loans that were sliced and diced and sold so many times that in alot of cases, no one even knew what was in the packages they had bought, these packages that had 1,000 different loans and different types of loans. In many cases, nobody even knew who owned the homes. That and Lehman was heavily leveraged at about 30:1
Dinamite explodes because of the nitroglycerin, still … you need a spark for the explosion. Rtrd.
This video is about how the crash started, not that they were the only ones
INDIANS AGAIN BANKRUPT THE WEST 😢😢😢
GREED
I I I c
Dr.Sumeth or othever is his name thosent but from him to se : I Am An Economist ' rhats hilarious 😂 what a clown 🤡 🤡 - HIT THE ROAD JACK - 🤣
HE A TYPICAL INDIAN. WHAT ELSE YOU EXPECT ???😅😅😅