Scholar Publishing Group The best way to conference proceedings by Scholar Publishing Group

CONFERENCES
Scholar Publishing Group

The Causes of Lehman Brothers Bankruptcy and Lessons for Chinese Financial Markets

Download as PDF

DOI: 10.38007/Proceedings.0000048

Author(s)

Xiaochen Zhang

Corresponding Author

Xiaochen Zhang

Abstract

Lehman Brothers remained the giant of the US financial market for a century. It was established by Henry Lehman in 1850. Lucrative cotton and other commodities were the main areas of operation in the beginning which later shifted to purely financial services in 1906. This article will point out the key reason for the bankruptcy of the firm and various viewpoints of research scholars regarding the event. It is divided into four parts each addressing the various issues. The first part will be consisting of the research work of other scholars regarding the incident. Part two will put the focus on the three-key aspect regarding the Lehman Brother bankruptcy that includes as an investment, government regulation, and risk. The final part will include the key lesson and learning points from this event for the Chinese financial market. Derivative regulation from the Chinese perspective will be discussed in detail. Poor management along with the existence of derivative risk contributed to the failure of firm success operations resulting in bankruptcy on September 15, 2008.

Keywords

Bankruptcy; Lehman Brothers; Derivatives regulation