The Last of Lehman Brothers
The Wall Street giant whose collapse 14 years ago helped trigger a global financial crisis is only mostly dead. In London, a handful of people attend to its European remains. For some who took the risk of buying some of the bank's distressed debt there, it's been a very profitable trade.
Read more from Bloomberg Businessweek: www.bloomberg.com/features/20...
#Finance #Storylines #BloombergQuicktake
--------
Like this video? Subscribe: kzhead.info?sub_...
Become a Quicktake Member for exclusive perks: kzhead.infojoin
Subscribe to Quicktake Explained: bit.ly/3iERrup
QuickTake Originals is Bloomberg's official premium video channel. We bring you insights and analysis from business, science, and technology experts who are shaping our future. We’re home to Hello World, Giant Leap, Storylines, and the series powering CityLab, Bloomberg Businessweek, Bloomberg Green, and much more.
Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world.
Visit our partner channel QuickTake News for breaking global news and insight in an instant.
Where were you when Lehman Brothers collapsed in 2008?
On Earth.
in kindergarden
Transitioning from school to college and excitedly trying to find out what the entire issue was all about :)
Working at a Canadian bank early in my career...
i was in 6th grade lol
Note to self: build a tunnel for employees to leave with their boxes secretly when I make a company for speculating
lol, yep
So what you're telling me is I still have a chance to work at Lehman Brothers right and make my dream come true
Have better dreams Mario.
Mario I'm with you o that bro. When the dust is settled they still have licenses and regulatory approvals that will allow us dreamers to build the asst mngmt firm of our dreams. perhaps a management buyout? dream big bro don't stop dreaming.
@@serematrust119 I'll start a pillowcase company with the first product will be a pillow case with the quote "Don't stop dreaming" on it.
@@landwarrior348 One time I dreamed with a shark that had braces so this dream is better.
@@MarioRafaelM Shut up Mario. Where’s Luigi?
Great video. Interesting delve considering 99% people haven’t a clue this happened
Pretty sure a lot of people knows about it
We're talking about one of the biggest events in the post-9/11 era. Pretty sure 99% of people do know about Lehman and the 2008-9 crises.
@@Cosmopean no genius - I was referring to the wind down process this whole video is about
@@Player-ix7rx You're crazy 9 out of 10 people in a room would space on this. You give Americans to much credit dude.
Did you just emerge from a rock?
i was there.. in front of the computer in my trading deks.. watching it all unforld.. on the TV, plus feeling it in my own skin as i was trading freight. having said that. i watch the movie and read pretty much whatever is there to read abt these guys, and salomon brothers, Gs and etc.. and the best book.. too big too fail.. loved the book
Still a freight trader Ronnie mate?
"too big to fail" if history taught us anything, it's that *nothing* is too big to fail
💯💯💯
Say that to the banks that got bailed out
That phrase never meant they couldn’t feasibly fail. It was always intended to mean “we can’t let this fail because it’s too important to the economy”
the phrase means that if it were to fail it would be catastrophic, not that it couldn't actually fail.
@@_a_5494 I know, but due to their size they could in theory run the company into the ground and the government would still pick up the bill
I was too young to remember this happening but I'm 21 now and never knew about this and how greatly it changed things...
22 here, we need it to happen again in order to afford a home.
@@professorjack2099 lol wait 5 years so we can save. I don't want to graduate into this bs
Nobody selling out if there loans under 4%. Only way you buy now is new house construction.
Fascinating.
Great that shareholders got money back but they failed to mention the multitude of mortgage holders whose lives were destroyed by the fraudulent securities being traded by organisations like LB.
I think people who had reasonable income and didn’t lie on mortgage application survived because the market was bailed out by the government prices feel but temporary now the prices have ballooned again worse than in 2008. The point is don’t buy stuff you can’t afford no matter how sweet that deal sounds. I don’t feel sorry for those who lied on application that they work and they actually didn’t even meet basic qualification and held no stable employment. It was of course the fault of the bank for not checking and giving away mortgages to everyone.
As far as I'm aware the shareholders got nothing. Only the bond holders were paid back.
The shareholders who held as Lehman went under made on average 140% profit…… If they held on to their shares, but we all know most people panic sold!!!
Most educated lay person on the 2008 crisis ☝️
that’s the rulers plan to keep creating poverty so they can control the public dumb public
"A lower quality of mortgage bonds" boy.. isnt that an understatement...
Lol that's right, lower quality of mortgage bonds would seem still higher than unsecured notes or mezzanine
It's the ultimate hold. Shout out to them. 😊
oh no those poor banker
So true - glad I read this. I’ll just stop now.
Merchant Bankers
If you are wondering how the original creditors made money, it's because all the shareholder money was basically divvied up.
Well, that's how it usually works
I remember I applied for jobs there too
Anyone else watching this after what’s rumoured to be happening with Credit Suisse about them on the verge of collapsing… interesting times we are living in.
That guy mentioned he still works for Lehman managing their “commercial property exposure”. Separately I e heard the next crash is likely to be driven by commercial mortgage backed securities. Wouldn’t that be funny if the remnants of Lehman were party to two separate crashes?
You have a funny idea about what is funny!!!!
For godsakes, the last thing we need is another crash .......
It will happen, eventually. CLOs are major candidates to trigger the next crisis in the not so distant future.
@@thedevlounge4220 “…first of all that distant future…” Not what I wrote; what I wrote was “…not so distant future…” which could, in fact, be tomorrow. Too fast on the keyboard trigger, gotta improve your reading skills mate.
Basically, when the wreck is still going and crashes again… lol
Well that was as clear as mud 👍🏻
At least this coverage shows that they were not fools just lending huge credits.
I hope my capital trust go up finally. Lehnq,lehkq,lehlq and lhhmq
Wow. Great video. And Ithought L.B. just went bust an no one recovered anything!
Scares, panics, hype, euphoria. Standard markets madness. But good for the crafty ones.
The last couple of years have been banner years in that department...traders love turmoil!!
Lots of firms goes belly up because of timing (liquidity) problems, that's their problem no more bailouts!
I hop you'd enjoy going back to the stone ages
@@lukealadeen7836 A stone can't fly, Mother can't fly, hence mother is a stone;-)
I always thought Lehman Brothers was like a Burlington Coat Factory.
Apt
Where are they now?
I bought so much cheap real estate and rental properties in Seattle like 3 years after this happened, coming out of college. Now I’m doing great….the end.
Classic Todd packer
My parents could’ve afforded a couple of houses but they were too scared to invest money unfortunately
@@MK-jq8ow lots of people like that. The money they were too scared to invest will just go to someone else when they pass.
Younger investors with lots of time during which they wouldn't need to touch their investments could (and perhaps should) have kept holding. On the other hand, older investors would have panicked seeing their retirement funds go up in smoke.
Diamond hands!
There was no telling how much the assets of Lehman Brothers were really worth. Bankruptcy proceedings are long and complicated, with senior debts being satisfied first, and equity last. It would have been prudent to sell at any price to be fair to investors at the time.
As said in the video, it's very unusual that they got the money plus interest back, so it was no save bet
how convenient your putting this video out as AMC and GME are about to squeeze and do this to Shitadel.!!!! 👊🏿
My elderly father-in-law lost about $50,000 when Lehman collapsed.
How?
@@leyvithanTech Stock went to nearly nothing.
And now at SVB to that category
What a big shame - if given more time another Wall street bank would be trading
Marge: Citadel... Hi there 👌
The greed always leads to this, the US economy is falling like Roman Empire from greed and corruption.
You know this was about.. 14 years ago right? If it's falling like you said we should be poverty striken by now
I just realised something, they don't give a lot of numbers. They jus talk about it being BIG.
coincidence they're posting a video about a big bank going bankrupt?
Or... they just posted a video about a bank going bankrupt...
So it said the creditors got all their money back. But what about equity holders?
They get paid last so it’s very likely nothing was left for them.
Zilch. They owed more than the comoany was worth
Stop complaining Cheers from west Africa 🦅
Why couldn't they just bail them out? Like all the other banks that followed? I never did get that one.
Because they´d already bailed Bear Stearns, and thought people wouldn´t tolerate another bailout in a year where they were specially concerned about public opinion due to elections. But the aftermath was horribly handled, didn't calm the markets and caused much trouble in Europe. On top of that, it finally became clear by AIG´s enormous exposure and imminent failure that this was an unstoppable domino-effect shitshow, and that´s when the rest of them got bailed out. In Brazil, we have an expression called "the piranha ox" that originated from old-time cattle ranchers killing an old or sick ox and throwing the bleeding body into a river full of piranhas, in order to cross the river with the rest of the cattle unharmed. Lehman Brothers was a piranha ox that didn't work.
Global Financial Bank Credit Suisse went bust in March of 2023.
I didn't know there was a Lehman UK
someone always wins
When no one was seriously actually indicted for '08 crisis., that's the time I gave up on corruption in Washington and wall street
It's criminal that these investors made a fortune while regular folks lost everything and no one went to jail!
They still are
Jail for what exactly. The whole nation is greedy. Taking on debt they can’t afford. And the bankers issuing it. Americans are mad.
If I buy your house in foreclosure in 2008 and then I sell it for 2x-3x the price today is it criminal? To me, it's just a market.
Jealous, much? These guys made money salvaging a ruined firm. There would be more jobs lost without them. That's also how most current big businesses in the former USSR got started. They bought state assets using what little savings they had and got them up and running again.
Equity investors are at the bottom of the totem pole when a company is liquidated, receiving the remaining cash after all assets are auctioned off and all debts and trade claims satisfied with the proceeds.
minute 5:42 "so my name is Dar Raehan" 🤔 what? 🤣 it's not even English. it's more like a cat ranting in the alley
Wow!
The biggest hedge fund is black rock
It's more like a shadow bank
Blackrock is an asset manager. They own several hedge funds, wealth managers, exchange traded funds, investment banks, and even get jobs from the Fed when needed
Wrong, it isn’t a hedge fund at all. Almost all it’s business is an etf business, ishares. The remaining small part is private equity. You probably thinking of a completely different business, blackstone, which also isn’t a hedge fund at all.
If the fed sold their holdings of MBS what would happen?
The most important thing to take is that Lehman would have survived if not for the bureaucratic BS, if congress followed through with the bail out, Lehman would have survived the storm and got rid of the toxic assets sending a message through wall street and possibly avoiding an economic recession. But because everyone was worried about how that would look during the elections on bailing out banks, they decided to go against it and thus allowing the economy to go into a recession.
Back in March, nobody would save Bearn Stearns because of the election at the end of the year... What would happen if the panic was stopped earlier? Nobody will ever know.
Exactly!
Exactly!
Is that the lesson? Sounds like A LOT of Rich people got richer. The only ones left holding the bag were shareholders. People holding unsecured Debt walked away with 140% return!
Who buys toxic assets in massive quantities ?
Playing poker with loaned money...
Some idiots do that
"not good, it sucks"
It could have survived.
Is all about greed 🤔🤔🤔🤔🤔
Yeah. Yours
The Lehman brothers can be found cleaning the church at a missionary order somewhere in nowhereland
1
SVB brought me here.
And now we have Melvin Capital. More to come.
That occurred for no fault of their own and was nothing compared to the size of Lehman.
@@samsonsoturian6013 LB knew exactly what they were doing and the risk they were holding leading up to the 2008 crash - they just chose to ignore it. It didn't take a genius to see subprime mortgage securities were risky and unsustainable. Prior to 2008 there were already cases against countrywide etc. pending for selling fraudulent or not properly vetted mortgages.
@@remoteworkboard that's actually impossible. If they knew there would be a crash, they wouldn't have gone bankrupt
@@samsonsoturian6013 No it means they got greedy and held the bag too long. Edit: The reason for this is because they thought Bob Diamond at Barclays Capital at the time was going to buy them out so they would have the liquidity to make it through.
@@remoteworkboard so seem to assume everyone is as incompetent as yourself
"blank piece of paper and I can move on", not sure how your conscious feels after everything and seeing how many people were affected.
Lehman Bros was collapsed by statist management.
...brought down by greed and low moral standards.
Eff them, they willingly worked for them didn't they?
Who's going to Bail us out?
// if you bought early you could've made money! // im laffin
They didn’t have that Limitless drug?
Problem. Reaction. Xolution.
Moral of the story: long term - real estate is never a bubble
Two Businessmen of a Certain Ethnicity were forming a Partnership. One Important Clause state:" In the Event of Bankruptcy, Profits shall be Divided Equally".
That was funny.
What if I brought it up to you just one piece..?!
"The Quality of Risk". Now in 2022 we see the QoR rear its head again.
A bit like salon up one morning and to find my son had been made property of the ministry of Canada - for a comment on KZhead.
Lol i work with one of those guys
A bit like WAKING up.... Not "salon".
maybe those assets grew in value because every central banks printed money until they did eh?
2008 Lehman busted 2022 crypto bust. See Luna.
Wait for citadel securities ⌛️
@@louiealsayyed1880 but tell me friend, what do we buy now?
Buy the High shorted stocks and HOLD (small market cap)
LUNA UST go bust bigger than Lehman Brother... it's more global than Lehman..
luna's market cap was 29 bln and in the video they said that Lehmanns assets were 600 bln so it is more than 30x bigger.
They should have all gone into bankruptcy.
Can't wait for another overdue crash to come !!!!
Bitcoin
@@fuckbankers Ayo
👍
Yo I’m still here what are you talking about! Lehman bros KCMO
Greed is not good. Dont believe those movies.
Bag holders
Lol
Bury that and it will happen again to another family. Accountability! There is simply no way round that. Canadian parliament and Trudeau should have put country first, the moment they heard what Trudeau had done - but he was too upper class for Canadian law and order to apply to him. Follow your rules and laws - they are there for a reason. My son is too big for NO accountability!
Quit using accountability as code for draconian punishment
They all should have gone bankrupt.
"Tell me you know nothing about banking without telling me you know nothing about banking"
@@stralerman During covid, the economy was shut down and the world survived. If the government hadn't bailout these greedy people, the world would have survive. Their world wouldn't and that's all they're worried about, themselves. Bankers are the most arrogant people I've met. They think the world revolves around them. It doesn't. Been there, done it. The rot in the banking system is showing it's self again. This time, I hope the government let's capitalism work. This time there has to be consequences to their actions. There are winners and losers in a capitalist system. Bankers think they are entitled to win all the time. If they start to lose because of their incompetence and greed, they cry wolf and tell everyone the world is coming to an end. It won't. In a capitalist economy, the strong survive. The weak go bankrupt. The world can survive without credit default swaps. You play with fire, you're going to get burnt.
@@stralerman We'd all be screwed more than we are already
Who is "they all" and why do you want hundreds of millions to lose their jobs.
Do you stuff your money under the bed?
Look at this woman... 33 years of work. She has no face... Is this how a woman should look like?...
we all become old in due time dude. 🤣 what ya mean with no face c'mon
Guys the stock market knew beforehand the CPI numbers would be low (and markets surged of course: Sept and Oct CPI resulted in surges). There's an indicator that tells you the markets will surge or crash. I discuss and prove it - 5-10 mins of your time will financially change your life.