some additional references on the great financial crisis and lehman brothers bankruptcy

8/3/2019 Some Additional References on the Great Financial Crisis and Lehman Brothers Bankruptcy

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Jean-Paul LeboutetDecember,16 2011

Some Additional References on the Great Financial crisis and LehmanBrothers Bankruptcy

Macro-economic environment

A series of data reports extracted from the World Bank DatabaseSee Excel

spread sheet uploaded besides.

Mortgaged Backed Issuance and Bonds Markets:

http://www.investinginbonds.com/news.asp?id=3149&catid=36

Association of Financial Markets in Europe, useful in particular on

derivatives statistics and rules:

http://www.afme.eu/

Investment Banking and bank regulations

Here is a good manual on Investment banking, hedge funds, private equity.

It is necessary to read the first chapters with a longer historical perspective:

until the mid 90s US bank mergers were under tight regulatory and

anti-trust approvals. In the mid 80s continental European banks which

had a universal model allowing the same judicial entity to run commercial

banking, investment banking and asset management beefed up their

investment banking franchise. This was seen as a threat both by large USA

commercial banks and leading investment banks. One factor was the

progressive sale of all UK merchant banks to other banks (example: MorganGrenfell acquired by Deutsche Bank; JP Morgan acquired Jardine

Flemming). Global competition including in the USA was a strong incentive

for the USA and Japan to relieve the segregation of management and

shareholding between banks (commercial banks) and securities houses

(investment banks) dating back from the crisis of the 20s and 30s.

http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/0124

15820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1
http://www.investinginbonds.com/news.asp?id=3149&catid=36http://www.investinginbonds.com/news.asp?id=3149&catid=36http://www.afme.eu/http://www.afme.eu/http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/012415820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/012415820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/012415820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/012415820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/012415820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1http://www.afme.eu/http://www.investinginbonds.com/news.asp?id=3149&catid=36


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Site of the Bank of International Settlement (based in Basle). The

regulations issued apply to international banks and institutions and

domestic banks and institutions that national regulators design. The siteprovide the current capital regulation, definition of risks, the new system to

be implemented (Basle III), and many statistics.

Basle I was the initial capital regulation system. It required banks to

maintain 8% of permanent capital in front of assets, valued from a simplified

perspective of credit risk (weight 0 for sovereign risk, weight 20 for

international institutions, weight 100 for corporates and others). Basle II

kept the principle for credit risks but added a valuation of market risks (risk

that the value of an asset like a credit, a bond, a derivatives contract, varies

with changes in a market price) and operational risks (statistical losses due

to systems, administrative errors and fraud). Basle III adds capital buffers

and redefines the assessment of risks.

http://www.bis.org/

Site of the US regulator for Investment Banks, the Securities and Exchange

Commission. Its employee headcount has been around 4,000 through the last

ten years despite explosion of financial markets activities. However, it is not

to be increased in the future most probably, with the perspective of the sector

laying off still for the years to come. This site is also useful to find the annual

(10K) and quarterly (10Q) financial statements of public companies, through

the system EDGAR.

http://www.sec.gov/

Monetary Authority in USA: Federal Reserve Bank System (Fed).

http://www.federalreserve.gov/ Site of the Japanese Financial Services Agency.

Very useful on many subjects, not only Japan, through its working groups on

current topics. Also, it gathered supervision information on all types of

financial institutions in one place.

http://www.fsa.go.jp/
http://www.bis.org/http://www.bis.org/http://www.sec.gov/http://www.sec.gov/http://www.federalreserve.gov/http://www.federalreserve.gov/http://www.fsa.go.jp/http://www.fsa.go.jp/http://www.fsa.go.jp/http://www.federalreserve.gov/http://www.sec.gov/http://www.bis.org/


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Great Financial Crisis

Detailed timeline of the crisis:http://www.creditwritedowns.com/credit-crisis-timeline/

Repurchase Agreements used by Lehman Brothers and other banks alike.

It is to be noted that the amounts didnt exceed 10% of tota l assets, which is

enough to make the ratio of Debt to Equity appear controlled, but not enough

to hide the growth nor mislead as to the weight of the bank in the market.

http://periodicals.faqs.org/201101/2250366861.html

Lehman Brothers

I dont recommend any book published on Lehman Brothers crisis so far. In

my view and knowledge, none provide an objective description and analysis

of the case. Some, if not the majority, are dangerously biased in a way or

another. Even relations by former employees lack objectivity and

perspective.

Harvard Business School has published a business case. It is unusually and

unfortunately of little use for the developments from 2006 to 2008, insisting

on the history of the investment bank.

The best source is therefore to be found in raw documents and reports of the

time.

Wall Street Journal article on September, 16 2008.

http://online.wsj.com/article/SB122152314746339697.htmlReuters article on December, 6 2011. Lehman Brothers exits chapter 11.

http://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S2011

1206?feedType=nl&feedName=usdai
http://www.creditwritedowns.com/credit-crisis-timeline/http://www.creditwritedowns.com/credit-crisis-timeline/http://periodicals.faqs.org/201101/2250366861.htmlhttp://periodicals.faqs.org/201101/2250366861.htmlhttp://online.wsj.com/article/SB122152314746339697.htmlhttp://online.wsj.com/article/SB122152314746339697.htmlhttp://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S20111206?feedType=nl&feedName=usdaihttp://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S20111206?feedType=nl&feedName=usdaihttp://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S20111206?feedType=nl&feedName=usdaihttp://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S20111206?feedType=nl&feedName=usdaihttp://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S20111206?feedType=nl&feedName=usdaihttp://online.wsj.com/article/SB122152314746339697.htmlhttp://periodicals.faqs.org/201101/2250366861.htmlhttp://www.creditwritedowns.com/credit-crisis-timeline/

some additional references on the great financial crisis and lehman brothers bankruptcy

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