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  • Essay / Lehman Brothers Case Study - 1200

    Lehman Brothers Incorporation was the fourth largest investment bank in the United States of America before it closed its operations. And it's very famous and even in Hollywood they put their company name on their films like "Despicable Me" which is one of the most famous animated films and filmed on father-daughters . In this film, under the name Bank of Evil, they put formerly Lehman Brothers. Not only this movie but also other movies like Margin Call, Too Big to Fail and Horrible Bosses. The British also made the film titled "The Last Day of Lehman Brothers".1.1 HistoryLehman Brothers Company was founded in 1844, a 23-year-old young man named Henry Lehman emigrated to the United States of America from Rimper, Bavaria and he settled in Montgomery, Alabama. After that, he opened a dry goods store called H.Lehman. In 1847 his brother Emanuel Lehman came to him and the business became H. Lehman and Bro. In 1850 their name was changed again as their youngest brother named Mayer Lehman arrived and they became Lehman Brothers. During the 1850s, in the United States, cotton was one of the largest corporations so they traded cotton and it became their second business. After that, their business grew. In 1855, Henry died of yellow fever and the two remaining brothers continued in business. In 1858 they moved to the southern cotton trade in New York. And the Lehmans opened their branch in Manhattan and Emanuel Lehman moved in and ran the office. In 1870, Lehman Brothers helped found the New York Cotton Exchange. In 1883 the Lehman Brothers became a member of the Coffee Exchange and in 1887 they became a member of the New York Sto...... middle of paper ...... and tried to make the money grow and grow, eventually l money will eat you. I think the case of Lehman Brothers is exactly the same. Because the power of money is so great and people are not good enough to handle it. So their money kept growing inside and when the right people came in it was just too late to control it. In fact, no one in this company was cheating and they simply couldn't control it. 5.1 Conclusion In conclusion, even the start of the business was good and reliable because it could only reach the family members, but as the business grew more and more, only the family members were not sufficient for the strength of men or for the labor force. So, non-family members joined the company and the company became a limited liability company. And because the company is too big, people can't control it for five years and then it collapses..