Financial And Commercial History Of The Lehman Brothers

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For more than a century, the Lehman Brothers have played an important part in the financial and commercial history of the United States. Throughout history, the Lehman brothers gave growth to American industry and technology as well as the establishment of the Modern Corporation we all know today. With the growth of the American economy, there were always challenges such as the great depression or both the world wars. The company managed to survive all of these challenges but when the housing bubble began to burst in 2007; its risky subprime mortgages would force them to into bankruptcy. To understand why a company of this magnitude would take this risk, it is imperative that the history of this mighty empire be examined. Throughout history, the company diversified its investments which included cotton; coffee and petroleum which in turn helped them survive major conflicts such as the Civil war. Lehman Brother’s decision to leave its long practice of smart investments, by participating in the mortgage banking business through the use of Federal Reserved-backed advances, and subprime mortgages; led to the failure of the company with an impact on the stock market not since September 11th.
In 1844, Henry Lehman immigrated from Rimpar, Germany, to Montgomery, Alabama where he established a small shop selling groceries, dry goods, and utensils to the local cotton farmers. By 1850, his two brothers, Emanuel and Mayer, had joined him in the business, and they named it Lehman

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