Introduction to Risk Management

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Narrative:
Introduction:
Lehman Brothers is a diversified, diversified investment bank that serves the financial needs of global companies, institutions, governments, and investors. And it is one of the most powerful stock and bond underwriters and traders in the world. At the same time, the company also serves as an important financial advisor to many multinational companies and governments around the world, and has many industries recognized international best analysts. Since its establishment in 1850, Lehman Brothers has established a global reputation for creating innovative products, exploring the latest financing methods, and providing the best quality services.
Case:
In 2007, Lehman ranked 132 in the Fortune 500, with total assets of nearly 700 billion US dollars. From September 2008, Lehman's stock price plunged 77% within a week, and the company's market value shrank significantly from $ 11.2 billion to $ 2.5 billion. In the first quarter, Lehman sold one-fifth of leveraged loans, and at the same time used the company's assets as collateral, borrowing a lot of cash to trade other fixed-income products for customers. In the second quarter, 147 billion US dollars of assets were sold, and large-scale layoffs were carried out successively to reduce expenses. However, Lehman's self-help did not bring himself out of trouble. Lehman ultimately failed to escape bankruptcy.
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Revelation: