The Circumstances Surrounding The Bankruptcy Of Lehman Brothers

To the current, the United States'subprime mortgage crisis has been nearly four years, which is gradually causing the financial system to the inherent immune disorders and finally triggered a global crisis. The mere mention of the "rare economic crisis" and the degree of harm caused deep concern around the world. Throughout the subprime mortgage crisis and the diffusion process, the author notes that Lehman's bankruptcy is a landmark event. Lehman bankruptcy make the sub-prime crisis begin evolve as the financial crisis.Based on this, I will take Lehman Brothers as an example in the text. Through the background, process and the consequent serious consequences, and the sub-prime ins and outs of financial derivatives, in-depth analysis of the financial crisis, I will analysis the collapse of Lehman Brothers and the mechanism, even propose recommendations.This article is divided into three parts, including introduction, body and conclusion.The introduction part is to specify the significance of the topic, and quoted a number of international researches on the Lehman Brothers bankruptcy literature, describing the most current research results.Body part is based on research of Lehman Brothers to start, which is divided into four chapters (chapter 2-5). Chapter 2 mainly focuses on the history of the Lehman Brothers bankruptcy. This chapter first describes the development process of Lehman Brothers, describing the past lives of the Lehman Brothers. Then, I describe the traditional investment banking business, followed by Lehman Brothers detailed business transformation.And elaborating on Lehman to get involved subprime mortgage market, I elaborate the reasons for the historical background.Chapter 3, before the Lehman Brothers bankruptcy crisis brewing as the theme, Lehman Brothers described in detail the external environment and internal mechanisms. External environment is mainly based on U.S. financial markets to study; and the internal mechanism is mainly based on the Lehman Brothers failure of internal control systems to proceed with research, then Lehman Brothers, respectively, described the relationship with the sub-prime market; and the relationship between subordinated debt And with the new relationship between accounting standards.Finally, I elaborated the bankruptcy of Lehman Brothers potential problems. Chapter 4 focuses on the crisis of Lehman Brothers. I start with the U.S. banking system began to discuss liquidity crisis, liquidity crisis and then to the main line, detail how the experience of Lehman Brothers, the liquidity crisis and ultimately bankruptcy. Finally, Lehman Brothers crashed down because of charging huge debt. Chapter 5 focuses on the consequences of Lehman Brothers. In this chapter, the author describes the bankruptcy of Lehman Brothers. Subprime mortgage crisis has accelerated the damage, and marked the beginning of full-blown financial crisis; then explained the subprime mortgage financial crisis since the sale of securities in the global spread. Finally I explained the financial the impact of the crisis on the real economy.Conclusion, the first part of this study will be summarized and gives specific recommendations for strengthening financial supervision to prevent the recurrence of such financial crises. Finally, the statement has not been addressed in a number of practical issues, including how to plug the banking supervision vulnerability and the assessment of how such accounting standards.