Case study Requirements:
From the case titled as "THE WEEKEND THAT CHANGED WALL STREET", answer the following questions:
QUESTION 1:
What were the causes of Lehman Brothers failure?
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.
QUESTION 2:
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)
QUESTION 3:
Examine the importance of the commercial paper market? Whydid the Lehman Brothers failure have an impact on it?
QUESTION 4:
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.