Jump to ContentJump to Main Navigation
Lehman BrothersA Crisis of Value$
Users without a subscription are not able to see the full content.

Oonagh McDonald

Print publication date: 2015

Print ISBN-13: 9781784993405

Published to Manchester Scholarship Online: May 2016

DOI: 10.7228/manchester/9781784993405.001.0001

Show Summary Details
Page of

PRINTED FROM MANCHESTER SCHOLARSHIP ONLINE (www.manchester.universitypressscholarship.com). (c) Copyright Manchester University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MSO for personal use.date: 20 June 2021

The Destruction of Value

The Destruction of Value

(p.113) 6 The Destruction of Value
Lehman Brothers

Oonagh McDonald

Manchester University Press

After September 2008, many argued that Lehman’s chaotic bankruptcy filing destroyed billions in value. The main destruction of value, it is said, came from the bankruptcy filing of Lehman Holdings, the parent guarantor, which triggered a series of defaults at subsidiaries holding some 900,000 derivative contracts, which were terminated, whereas a few extra weeks would have allowed Lehman to transfer or unwind most of them. Bankruptcy procedures do not cause a ‘crisis of confidence’ but follow it. In Lehman’s case the filing for bankruptcy confirmed anxieties. It can. However, add to the destruction of value because of the new information flows it brings to light, although even that is to the benefit of some, such as hedge funds, by providing investment opportunities.

Keywords:   Lehman Brothers, Global financial crisis, banking, crash, economy, debt, capital, bankruptcy, value, hedge fund

Manchester Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.