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Impact of the credit crisis on investment banks Essay

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Cause of Problems for Financial Institutions during the Credit
Crisis: Select a financial institution that had serious financial problems as a result of the credit crisis. Determine the main underlying causes of the problems experienced by that financial institution. Explain how these problems might have been avoided.

Table of Contents
I- Credit crisis .................................................................................................... 2
II- Impact of the credit crisis on investment banks ................................. 2
1) Definition of Investment bank ................................................................... 2
2) Impact of the credit crisis on investment bank
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However, Morgan Stanley also chosen to convert to bank holding companies.  Similarly Wachovia Securities had to rename itself as Wells Fargo Advisors after being sold to the massive Wells Fargo bank.

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FINANCIAL MARKETS & INSTITUTIONS

From the table, the companies had existed for a combined total of 549 years, but within the span of six months, they would all be gone. Therefore, we can see the impact of credit crisis to investment banks is huge.
In this report, to clarify the causes of the problems experienced by investment banks and determine how these problems might have been avoided, I will show the bankruptcy of Lehman
Brothers- the fourth largest investment bank in the Unites States to analyze these problems.

III1)

Lehman Brothers
Introduction

Lehman Brothers was founded in 1850 by three brothers Henry, Emanuel and Mayer Lehman. It is a stock corporation and the 4th largest investment bank in the United States.
Main fields of Lehman Brothers are investment bank, trading stocks and bonds, market. Its head office is New York City and two subsidiaries in London and Tokyo and also many representative offices around the world.
For over 150 years, Lehman Brothers has had a big impact on the financial and commercial history of the United States. The history of this firm follows the growth of American industry and the formation of the modern corporation. However,
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