History Of Lehman Brothers By Henry Lehman

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History of Lehman Brothers Henry Lehman in Montgomery, Alabama established Lehman Brothers in 1844. The company started out as a grocery store and was changed to Lehman Brothers in 1850 after Henry’s two brothers; Emanuel and Mayer linked with him in the business. Soon after, Lehman Brothers developed into a brokerage company distributing cotton. It opened offices in New York in 1858 and this gave the firm a stronger presence in the commodities trading, as well as it gave it a foothold in the financial community. During the construction of the railway, Lehman Brothers merged with Kuhn, Loeb & Co and became the primary financial advisors and underwriters to the railroad industry. The company began financing emerging businesses such as airlines, oil and electric companies. Over its long existence, American Express acquired the company, but Lehman later broke off and started operating as an independent company until the day of its collapse (Swedberg, 2010). Lehman Brothers was a company in the United States that operated in the financial market before the financial crisis that occurred in the year 2008. The company was listed in the New York Stock Exchange and its securities were publicly traded. For many years, the company was performing well. However, a failure to manage risks appropriately led to the collapse of the company. On September 15, 2008, Lehman Brothers, which was the fourth biggest investment bank in the U.S, filed for Chapter 11 bankruptcy protection. At the
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