Lehman Brothers' Failure Pushes Central Banks To Inject Money Into The Credit Markets
Thu Sept 18, 2008 Best-Mortgage-Companies.com Lehman Brothers, which used to be an innovator in global finance and served the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide, has failed. Its headquarters are in New York, with regional offices in London and Tokyo. Founded in 1850, Lehman Brothers had maintained leadership in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. Inter-bank lending ground to a virtual halt as banks grew increasingly wary of lending to each other after the investment bank failed. The news pushed central banks to boost liquidity. The world's biggest central banks moved Thursday to inject massive amounts of liquidity into the financial system in a bid to alleviate extreme distress caused by the collapse in short-term. The Fed provided additional $180 billion for short-term dollar auctions. Lehman's bankruptcy is the largest failure of an investment bank since Drexel Burnham Lambert collapsed amid fraud allegations 18 years ago. | more |
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