Author(s)

Shiqi Luo

Corresponding Author

Shiqi Luo

Abstract

This paper investigates the famous investment bank, Lehman Brothers, during its collapse in the Global Financial Crisis (GFC). Starting from a brief history of the Lehman Brothers and stating the context and background of the GFC, the paper carefully explained the theoretical reasoning behind the GFC from macroeconomics perspectives. Then the paper investigated the unique micro-level bank management issues of the Lehman Brothers during the GFC. Next, the paper discussed the essential question of whether the government should have saved the bank in 2008. In conclusion, fundamental theories were discussed, and policy implications were identified. In this chaotic time of the Covid-19 pandemic, this paper could lend perspectives still highly relevant to today's situation.

Keywords

Financial crisis, Global Financial Crisis (GFC), Lehman Brothers, Financial market, Bank management