"Lehman Brothers' Fall" by Ram Kumar Kakani, Vasudha Singhania & Martin Stack, 2012, Ivey School of Business
This case describes the financial undertakings of Lehman Brothers Inc., which was once the fourth-largest investment bank in the world. On September 15, 2008, less than a year after the bank presented its largest profit ever, the world watched its decline. In terms of size of assets, Lehman is considered the largest bankruptcy in history, with assets totaling US$639 billion and liabilities of US$613 billion. The U.S. credit crisis had uprooted the strength of Wall Street, with Lehman announcing a petition it filed under Chapter 11 of the U.S. Bankruptcy Code. The bankruptcy raised some interesting questions, the biggest among them being: How could a large company such as Lehman, with a record of reporting huge profits, become so helpless that it had to file for bankruptcy? This case can be used in: a financial accounting course, a course on fraud accounting, a financial reporting systems course, and others.
SDG Topics: Decent Work & Economic Growth / Reduced Inequalities / Responsible Consumption & Production / Peace, Justice and Strong Institutions.