Assignment:
From the case titled as "THE WEEKEND THAT CHANGED WALL STREET", answer the following questions:
Q1: What were the causes of Lehman Brothers failure?
Readings:
Definition of the Problem
• Core Problem
• Symptoms
• Other related problem
Alternative/Solutions/Options
• Develop a number of options
• Evaluate each option in relation to the core problem, feasibility (applicability), pros, cons, etc.
Q2: Why didn't the government interfere and bail out Lehman Brothers as it did with Bear Stearns?(You need to highlight the issue of moral hazard in the banking sector)
Q3: Examine the importance of the commercial paper market? Why did the Lehman Brothers failure have an impact on it?
Q4: Discuss the role that Lehman Brothers played in the CDS (Credit Default Swap) market at the time?
CASE ANALYSIS WRITE-UP
AN OUTLINE
Introduction
• Basic/General Information about the company:
• Background
• Nature of the Business
• Stages of Development
Definition of the Problem
• Core Problem
• Symptoms
• Other related problem
Alternative/Solutions/Options
• Develop a number of options
• Evaluate each option in relation to the core problem, feasibility (applicability), pros, cons, etc.
Recommendations
• Choose the best option that can help in solving the problems and add to the wellbeing of the company