The collapse of Lehman Brothers sent shockwaves throughout the financial system. Since, Lehman Brother’s historic bankruptcy phrases “like too big to fail,” “toxic assets” and “subprime crisis” have been splattered across newspapers and daily guest on newscasts. The jury is still out on whether the government should have stepped in to save the financial giant, but one thing is for sure: Our financial system will never be the same. FOX Business takes a look back at the days leading up to the collapse heard around the world.
Lehman Brothers’ employees flock to the building to gather their belongings as talks for Bank of America and Barclay’s to buy the bruised investment bank fell apart after the Federal Reserve refuses to bank some of Lehman’s liabilities.
Lehman Brothers enters Chapter 11 ending its 158-year run on Wall Street and becomes the biggest investment bank to collapse since 1990. The bank files for bankruptcy protection in a Federal Court in New York under $639 billion in assets and $613 billion in debt.
Former Lehman Brothers employees a passersbys decorate a portrait of then CEO Dick Fuld. During the bank’s annual shareholder meeting in mid-April 2008 Fuld told investors the worse of the credit crisis had passed, but warned that things, “will remain challenging.” In the coming months lawmakers will call Fuld to Capitol Hill to learn what he knew, and when he knew it and how massive warning signs were missed.