Lehmann Bro - a Vsm Perspective

Lehman Brothers Collapse A VSM Perspective Introduction Lehman Brothers is a name that today or so everyone across the globe is familiar with. It was started as a picayune gen eral store in the socio-economic class 1844 in Montgomery, atomic number 13 by a German immigrant Henry Lehman. Their next whopping step was in the course of instruction 1950, when Henry and his brothers Emanuel and Mayer joined unneurotic to form the Lehman Brothers. The firm kept on growing in the following years at a decent pace, as the USA economy prospered. However, their journey to become the fourth largest enthronisation bank in USA was not an easy one. They had to give-up the ghost the rail-road bankruptcies in the late 1800s. Then, they had to face the great Depression era of 1930s, followed by World War I and II. In the year 1994, they were successful in evading the swell shortage due to the American Express incident. They even came out of the Long term capital management collapse and the Russian default in the year 1998. So, one thing is for sure that the Lehman Brothers indeed had a turbulent past. But they always managed to come out of it success effectivey. However, it was not the analogous story for them always. The combination of collapsing US housing market and the Lehman Brothers blindfold rush into the sub-prime mortgage market proved too dark for the organization.

On September 15th, 2008 when the fourth largest investment bank in USA filed for bankruptcy, it had an asset worth $639 billion and a debt of $619 billion. Their bankruptcy filing was the largest in the entire history, way above the previous(prenominal) big organizations that got bankrupt (WorldCom and Enron). So why did the big banking demon which in the past had weathered many such incidents, failed so dramatically and rapidly within a mere fourth dimension frame of one week. The paper explores various reasons behind the get of Lehman Brothers that can be attributed to and explained according to the Viable Systems Model (VSM) which was proposed by Stafford Beer. Viable Systems Model (VSM)... If you want to get a full essay, order it on our website: Orderessay

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