Proposal: Lehman Brothers

Proposal: Lehman Brothers

Introduction

When Lehman Brothers collapsed, they had about $60 billion in toxic bad debts, and had assets of $639 billion against debts of $613 billion; making it the largest investment bank to collapse since the 1990's. With a bankruptcy of this capacity, you would expect the stock market to take some sort of hit. This study examines the market's reaction to this event by analyzing the risk adjusted return of selected brokerage firms' stock prices around the event date of September 15, 2008.

Background of the Study

A year ago this week, the US government allowed Lehman ...