The Fall Of Lehman Brothers

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The fall of Lehman brothers was the beginning of what would be a long road to recovery, one that we are still on in fact, the financial crisis sparked fierce debates on how the banking sector was run. Many agreed that banks had become ‘too big to fail’ and that they took on risky investments without any thought about the impact this would have on the world economy, this is because they believed they would be bailed out by the government. The question that has been part of an endless drawn out discussion, ever since the beginning of the crash, is whether big banks should be broken up in to smaller more manageable sized institutions. It is something that divides people, there are many differing opinions on how to handle the current financial situation we are surrounded by. Within this essay, some of the key points of view from both sides of the argument will be put forward, analysing both sides will lead the essay to conclude with whether banks should be broken up. The fact is the largest eighty corporations in the world are all financial institutions, each of these institutions controlling hundreds of billions, even multiple trillions worth of assets. These are what is known as megabanks, Admati (2013) and other economists believe that they are a particularly dangerous part of a fragile and inefficient financial system that exposes masses of money to unnecessary risk and distorts the economy. Argument claim that making this system safer should be at the forefront of people

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