Banking Industry (04:10)
In the early 2000s, banks were making large profits; investment bankers were the "golden boys" of the industry. Singapore became a destination for American banking wealth. Lehman Brothers, founded in 1850, was a significant player in the industry.
Aggressive Banking (03:37)
In 2006, lower interest rates allowed banks and consumers to borrow more money. Securitization led to aggressive growth in the mortgage industry. Banks pushed products to attract customers in Asia.
Asian Structured Products (03:50)
"Mr. Tan" discusses the bank's offer of a safe bond investment without knowing its connection to top American banks. The U.S. mortgage market was beginning to show signs of weakness and by the end of 2006, housing prices dramatically fell.
Investment Bank Powerhouse (06:10)
Lehman Brothers had offices around the world and $19 billion in revenues; Richard Fuld was a strong leader. Asia was Lehman's highest growth region in 2007; Lehman borrowed the most money of all Wall Street banks. Experts discuss Fuld's determination and incentives for employees to take bigger risks.
Excessive Mortgage Risks (02:09)
At the end of 2007, property prices dropped and home owners defaulted on loans. Banks believed they could withstand the problem but firms began collapsing.
First Collapse of 2008 (03:38)
J.P. Morgan Chase acquired Bear Stearns at two dollars a share; financial regulators worried about the impact. Could Lehman Brothers withstand the crisis?
Investment Banking Woes (03:37)
In June 2008, Lehman Brothers announced a $2.8 billion loss; regulators worried about the industry. Employee numbers dwindled and Fuld made a series of changes. Experts consider why Lehman Brothers continued forward.
Firm in Crisis (04:07)
On September 10, 2008, Lehman Brothers reported a nearly $4 billion loss; the SGX initiated risk management activities. U.S. Treasury Secretary Henry Paulson spoke with top executives of Wall Street; a federal bailout was not available.
Lehman Brothers' Demise (02:32)
Agnes Koh and her team in Singapore prepared for a collapse. On September 15, 2008, the firm declared bankruptcy. Thousands of people in the Asian market stood to lose millions.
Financial Reality Check (04:47)
Lehman Brothers' bankruptcy sparked dread throughout the financial and business systems, galvanizing people into action. The bankruptcy impacted investors in Singapore; protestors marched on Hong Lim Park.
Social Impact of Brothers' Collapse (06:11)
"Mr. Tan" suffered a heart attack; nearly 10,000 others in Singapore lost their life savings. Wall Street titans retained millions after the crisis and Fuld appeared at an official inquiry. Experts consider what the market in Singapore could have done differently and the changes it implemented.
Credits: Lehman Brothers (00:38)
Credits: Lehman Brothers
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