The Financial Review full of ten year articles on the Lehman collapse
But all the articles seem to miss the real issue
Lehman went under because it had excessive leverage of 30 to 1.
If it had been levered 15 to 1 it would have survived
Even with all the bad subprime it had on the balance sheet,
I had calculated months before Lehman collapsed that it had negative equity of 15 Billion and posted such information on this Board.
I also stated on this Board that it was going bankrupt several months before it actually did go kaput.
Lehman only had 20 Billion in equity backing up 600 Billion in assets and liabilities,
It was simply too little.
It needed at least double this equity level to survive.
Actually Deutche Bank currently has the same debt equity ratios as Lehman had when it went under!!!!!!!!!!!!
Thats why I think the German Government will have to bail it out.