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#lehmanbrothers #2008crisis #financialcrisis #greatrecession #subprime #housingmarketcrash #finance #investmentbanking #wallstreet #corporatefinance #macroeconomics #fintok #financetok #mbalife #wealthbuilding #analystlife #financialliteracy #marketcrash #foryou #fyp #viralreels #reelitfeelit #explorepage #explore #goldmansachs #jpmorgan
a year agoalexmarshll
As defaults increased and bankers realised the CDO’s were in fact not Triple A underlying assets, investment banks bet on the housing market as it had never gone down. As more defaults happened on more mortgages than expected since they were not proper AAA rated tranches, the trust of the housing market collapsed as the leverage of banks was extortionate. In Lehman, a woman was brought in to risk assess, yet her recommendations were ignored as the housing market was a safe bet and historically rallied profits. The false credit ratings of the mortgages, alongside the recklessness of bankers in large firms such as AIG, RBS, Lehman and Bear Stearns as they ignored the increase in defaults from 2006-2008 and remained highly leveraged, causing them to crash and burn. This decrease in housing market with such leverage led to house owners owing more money on their house than it is worth as the value had decreased below buying price, further increasing defaults as premiums were not met for subprime loans.
a year agobryc.e56
I wrote one essay on the 2008 Financial crisis my freshman year of highschool and i use it over and over again for the next 6 years and still going 😂
a year agojosiahlofton_
Don’t forget they also bought a bunch of high dollar international real estate at the top of the market. A lot of insiders that worked for Lehman knew they were massively over leveraged but Fuld ignored it.
a year agodiego.0830
There were plenty of other events that occurred that triggered the 08 financial collapse, not just Lehman going under
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