Lehman Brother Collapse Essay Example | Topics and Well Written Essays - 5000 words

Lehman Brother Collapse - Essay Example The news of its bankruptcy sent shock waves not only to the U.S. economy but also to the entire world. It faced around $600 billions of debt from mortgage back securities which caused a significant decline in its stock price. It is considered to be the most formidable case of bankruptcy in the corporate world. Before its bankruptcy, it was a profitable company. According to its 2006 annual Report, the asset under management had jumped to $225 million from the previous year’s $175 million. There were nearly 25936 employees working under the company. It shares were listed in New York stock Exchange and it was traded around $70 during that period. The bankruptcy of Lehman Brothers can be attributed to the unfavourable market situation and also to its own policies. According to Luigi Zingale, the three main factors that were instrumental in bringing such depression in the market are market complacency, lack of transparency and bad regulations. Apart from these three market conditions, the financial policy adopted by Lehman was also responsible for its bankruptcy (Zingale. 2008). Delinquency rates dropped during the real estate boom and the banks started providing new innovative mortgage options which led to the decline in lending standards. Bad regulations of money market and The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 accelerated the process. There was a lack of sufficient transparency in major markets. The market for credit default swaps (CDS) became unregulated and lost sufficient transparency. Lehman financial policy was not favourable for that period. Its asset to equity ratio (leverage) was abnormally high and it mostly relied on short term debt financing. However, the company tried to maintain its ratio before the crisis but it was too late to save the company from going bankrupt. The financial turmoil that originated towards the middle of 2007 has

School Finance Lawsuit on Track to Trial Date Essay

School Finance Lawsuit on Track to Trial Date - Essay Example This publication is about the Fort Bend ISD representing 84 school districts that are suing the state and also seeking massive education reforms.From the publication, we learn that fort bend ISD is representing a group of 84 other schools in suing the state and seeking massive education reforms.They argue that the state is not giving the schools adequate resources to meet the rising standards of education. Fort Bend ISD attorney describes the situation as being given a mission and not being given the tools to accomplish this mission.This publication points out that the mission set by the state for schools to meet cannot be accomplished if adequate tools to accomplish this mission are not provided by the state. It is, therefore, suggested that for 70 percent of pupils to meet the standards substantial additional funding per kid should be implemented. School superintendents suggest at least a couple of thousands of bucks per kid. This is according to fort bend ISD attorney David Thomps on.Thompson is taking four depositions a day from superintendents and experts for a week before the trial date. His firm is coordinating with lawyers representing the other petitioners to resolve who will take the lead on professionals, who will bear witness to the crisis they see with school financing. This means that the state should put more resources at the disposal of schools for them to meet the objectives and missions that they demand from schools.The reader should implement this experience in real life situations. Once the reader sets a mission there should be adequate resources to enable the achievement of this mission. For better education to be achieved in public schools, additional funding is essential to achieve this.