Open Access (free)
A Crisis of Value
Author: Oonagh McDonald

This book explains the fundamental causes of the bank's failure, including the inadequacy of the regulatory and supervisory framework. For some, it was the repeal of the Glass-Steagall Act that was the overriding cause, not just of the collapse of Lehman Brothers, but of the financial crisis as a whole. The book argues that the cause is partly to be found both in weak and ineffective regulation and also in a programme of regulation and supervision that was simply not fit for the purpose. Lehman Brothers' long history began with three brothers, immigrants from Germany, who sold selling groceries and dry goods to local cotton farmers. Dick Fuld, the chairman and CEO, and his senior management, ignored the increased risks, choosing to rely on over-valuations of the firm's assets. The book examines the regulation of the Big Five investment banks in the context of the changes which took place in the structure of banking after the repeal of the Glass-Steagall Act. It describes the introduction of the European Union's Consolidated Supervision Directive in 2004. The book examines the whole issue of valuing Lehman's assets and details the regulations covering appraisals and valuations of real estate, applicable at the time and to consider Lehman's approach in the light of these regulations. It argues that that the valuation of Lehman's real estate assets was problematic to say the least, as the regulators did not require the investment banks to adopt a recognized methodology of valuation, and that Lehman's own methods were flawed.

Open Access (free)
Linda Maynard

To celebrate his eighteenth birthday, Geoff Falk planned to visit relatives in Liverpool. Clouding his anticipated enjoyment was his ‘unhappiness’ that his older brother, Cecil, could not share the day with him. Cecil, an officer serving on the Balkan front, reassured his sibling that there was no need to rein in his pleasure. Such gestures were unnecessary, given his confidence in the enduring strength of their bond. ‘You & I miss one another very much,’ he wrote, ‘we have always been equals & always shall be.’ 1 Other accounts too attest not only to the

in Brothers in the Great War
Siblings, masculinity and emotions
Author: Linda Maynard

Drawing on a broad range of personal accounts, this is the first detailed study of siblinghood in wartime. The relative youth of the fighting men of the Great War intensified the emotional salience of sibling relationships. Long separations, trauma and bereavement tested sibling ties forged through shared childhoods, family practices, commitments and interests. We must not equate the absence of a verbal language of love with an absence of profound feelings. Quieter familial values of kindness, tolerance and unity, instilled by parents and reinforced by moral instruction, strengthened bonds between brothers and sisters. Examining the nexus of cultural and familial emotional norms, this study reveals the complex acts of mediation undertaken by siblings striving to reconcile conflicting obligations to society, the army and loved ones in families at home. Brothers enlisted and served together. Siblings witnessed departures and homecomings, shared family responsibilities, confided their anxieties and provided mutual support from a distance via letters and parcels. The strength soldier-brothers drew from each other came at an emotional cost to themselves and their comrades. The seismic casualties of the First World War proved a watershed moment in the culture of mourning and bereavement. Grief narratives reveal distinct patterns of mourning following the death of a loved sibling, suggesting a greater complexity to male grief than is often acknowledged. Surviving siblings acted as memory keepers, circumventing the anonymisation of the dead in public commemorations by restoring the particular war stories of their brothers.

Open Access (free)
Linda Maynard

I often think about my brother William – Bill. He used to hold my hand when we went to school … It broke my heart when he died. I would have liked to have died with him – but I didn’t, and here I am today. 1 Interviewed in 2004, centenarian Fred Lloyd demonstrably missed the love shown him by his ‘giant’ of a brother, capturing the essence of their fraternal bond in the motif of a clasped hand. The potency of brotherly grief is found in such simple recollections, the inconsequential acts of remembered love that haunted some men. The accounts examined in

in Brothers in the Great War
Open Access (free)
Linda Maynard

According to fraternal accounts of combat, serving alongside a brother fortified the heroic qualities of self-control and endurance. Brothers formed a separate blood unit within the military unit. Some siblings believed this made them almost invincible. For the Francis brothers, Ted explained, it supported their physical and psychological survival: The main idea with Harry and I was keeping alive. We had no thought for practically any other people, there was only our skill and our knowledge and being aware of the danger and not feeling frightened. In

in Brothers in the Great War
Oonagh McDonald

1 From Cotton Trader to Investment Banker: 1844–2008 A brief history On 29 January 2008, Lehman Brothers Holdings Inc reported record revenues of nearly $60bn and record earnings of over $4bn for its fiscal year ending 30 November 2007. Just eight months later, on 15 September 2008, Lehman Brothers sought Chapter 11 protection in the largest bankruptcy ever filed. Its collapse sent shock waves around the world. Everyone remembers the name, Lehman Brothers. Many regard its collapse as the cause of 2008's financial crisis

in Lehman Brothers
Open Access (free)
Oonagh McDonald

3 The Fateful Weekend Lehman's last efforts to save the company On 10 September 2008, Dick Fuld presented what would be the firm's last earnings report, announcing the loss of $3.9bn, the second quarterly loss after June's loss of $2.8bn: This is an extraordinary time for our industry, and one of the toughest periods in our Firm's history. The strategic initiatives we have announced today reflect our determination to fundamentally reposition Lehman Brothers by dramatically reducing

in Lehman Brothers
Open Access (free)
January to September 2008
Oonagh McDonald

2 From Hubris to Nemesis: January to September 2008 January 2008: outlook rosy In its financial report for the fiscal year ending 30 November 2007, published on 29 January 2008, Lehman Brothers reported record revenues of nearly $60bn, and record earnings in excess of $4bn. The highlights of the report included net revenues of $19.3bn (a 10 per cent increase over the previous year and the fifth consecutive record) and a net income of $4.2bn (a 5 per cent increase over the previous year and the fourth consecutive record

in Lehman Brothers
Open Access (free)
Oonagh McDonald

9 Monitoring Value Corporate governance after 2002 The purpose of this chapter is to consider who should have been responsible for keeping an eye on the value of assets in which Lehman Brothers chose to invest heavily, and on its risk management procedures. Lehman's board, as any other board, would have been expected to monitor the company in accordance with corporate governance requirements. The first question therefore is: what exactly was the Lehman board expected, indeed, required to do. The other two questions are

in Lehman Brothers
Open Access (free)
Oonagh McDonald

8 Measuring Value Previous chapters have set out the ways in which Lehman Brothers sought to value its assets and to hide its losses. Professional standards for the valuation of commercial and residential real estate existed at that time, but as the bankruptcy Examiner Valukas demonstrates in his report, Lehman showed little interest in conforming to them or hiring those who knew how to apply them. Against that background it can be seen that the bankruptcy process did not itself cause the destruction of value, although it

in Lehman Brothers