The greatest bankruptcy in history not only led to the fall of the owners themselves, but also contributed to major political and social changes
If you take dry numeric data into account, the fall of Lehman Brothers from 2008 deserves the greatest bankruptcy in history. And this record was not defeated until today. The financial crisis, initiated with submitting a request for bankruptcy, also became record breaking in terms of the number of suicides associated with it. Only in the US were even 6.5 thousand added.
The collision of the bank founded in 1850 by Henry Lehman deserves special attention, especially since other banks and institutions can in fact be the most important anti -gentlemen instead of him. However, because it often happens in human history, the community causes crimes from his group of scapegoat and blames all the blame. In this way, Lehman Brothers was almost the most important culprit of the crisis, he focused on all the attention of society, and then his life ended by the assets that should take over from other banks.
The bankruptcy of Lehman Brothers took place in a simplified manner because the bank did not lose particularly risky instruments that is known as credit risk -waps over time. In the years prior to the crisis, the American federal authorities created a system of stimuli and subsidies for homes that are offered at least (ie so -grown subprime loans with low quality). Although the power was exercised by the Republican George W. Bush, special emphasis was placed so that the poorly paid representatives of ethnic minorities and freshly baked immigrants could acquire their own housing.
You do not have to be a financial specialist to understand that granting this type of loan with a high risk was associated. That is why banks began to use the securitization en masse, which consisted of making special packages from many subprime loans, which were then sold as individual effects. Interestingly, one of the most active promoters of this procedure was Larry Fink, currently the president of the most powerful investment company in the world – BlackRock. In his opinion, securitization treatment was extremely favorable for the poorer citizens who had the opportunity to buy their own apartment.
Source: Do Rzeczy

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.