One of the biggest U.S. investment banks, Lehman Brothers Holdings Inc., on Monday filed for bankruptcy after two most serious buyers Barcklays and Bank of America (BOA) withdrew from talks to buy the firm.
It filed for Chapter 11 bankruptcy protection listing bank debt of 613 billion U.S. dollars, 155 billion dollars in bond debt and assets worth 639 billion dollars.
The filing is the largest bankruptcy in the U.S. history, which has shaken-up global finacial markets enormously, causing most stocks in the world tumbled, particularly leading Dow Jones to fall on Monday more than 504 points, or 4.4 percent, to 10,917, the steepest point drop since the market reopened following the Sept. 11, 2001 attacks.
New York-based Lehman was a global financial-services firm, which does business in various fields, such as investment banking, equity and fixed-income sales, research and trading, investment management, private equity, and private banking.
The firm's worldwide headquarters is in New York City, with regional headquarters in London and Tokyo, as well as offices located throughout the world.
The company was founded in 1850 by German Lehman brothers Henry, Emanuel and Mayer. It was originally a dry-goods store, called "H. Lehman", opened by Henry in the city of Montgomery, Alabama in 1847. The firm moved to New York City after the Civil War and grew into one of Wall Street's investment giants.
The company's primary subsidiaries include Lehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, and the Crossroads Group.
(Agencies September 13, 2008)