Sunday, November 2, 2008

Lehman Brothers in World’s Largest Bankruptcy

Lehman Brothers, the leading US-based investment bank, yesterday filed for bankruptcy, in what appears to be the world’s largest bankruptcy in history. Panic attack in the US financial markets are escalating to a dangerous new height.

It is a sad and cruel ending for financial institution rich of history, spanning almost since 160 years ago. Lehman Brothers is one of the oldest firms on the Wall Street.

For months it has been sinking with a number of potential takeovers and white knights in talks, including Bank of America and Barclays Bank but all of them pulled out, leaving the company in tatters. On early September, its US operation slashed more than 1,200 jobs in a futile attempt to save the day.

Thousands of Lehman’s employees in New York and London were seen in tears and distress as they were clearing off their desk to go home. The sudden, massive job loss of over 5,000 will also go down as one of the biggest single losses of jobs in the United Kingdom. A reporter described that “people were coming out of the Lehman Brothers’ headquarter in London carrying card box boxes stuffed with their personal effects as other employees in the neighboring banks watched in horror.”

As the bankruptcy also continues to deepen the financial crisis, they could be next to empty their desks.

Earlier this year, Lehman Brothers was named among the best employers for new graduates, alongside PwC, Intel, Microsoft and L’Oreal.

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