Lehman execs 'ignored early warning signs' of crisis

Senior executives at Lehman Brothers knew of the risks which led to the investment bank's collapse, and chose to ignore warning signs as early as 2007, according to new documents.

Papers released by law firm Jenner & Block LLP show the reckless attitude of the bank’s management in the period leading up to its failure in September 2008, which sent shockwaves through the market and triggered a financial crisis. According to Bloomberg’s analysis of the documents, a presentation given in a Lehmans board meeting in September 2007 included a clear summary of the brewing crisis. “The initial tremors were felt at the end of 2006,” the board was told, “when the poor loan performance of sub- prime borrowers began to be a cause for concern in the marketplace. This was evi...