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...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

Demand for key inputs will rise sharply, as nations look to accelerate their renewables programmes.

Greenflation: What are the drivers and how long will it last?

Metal price rises 'structural'

clock 12 August 2022 • 3 min read
The reduction was less than the 0.3% decline forecast by analysis

UK economy shrinks by 0.1% as cost-of-living crisis sets in

‘Difficult to dodge recession’

clock 12 August 2022 • 2 min read
Partner insight: Out of the wilderness

Partner insight: Out of the wilderness

Solving the problem of inertia in cash gives opportunities to both advisers and their clients, say Flagstone's Claire Jones and Grovewood Wealth Management's Lynne Gadsden.

Lynne Gadsden @ Flagstone
clock 11 August 2022 • 1 min read