On September 15, 2008, New York-based investment bank and financial services firm Lehman Brothers filed for Chapter 11 bankruptcy. The bankruptcy filing, which remains the largest in American history, had many far-reaching effects on both domestic and foreign economies. The bankruptcy of Lehman Brothers and resulting Credit Crisis of 2008 led to sweeping domestic financial regulatory reform. New legislation, such as the Dodd-Frank Bill—coupled with the creation of the Consumer Financial Protection Bureau—stand as two examples of measures the government took to guard against future disasters in the wake of this historic bankruptcy. Nevertheless, it took years for investor and consumer confidence to reenter the market.
Use the research you did in the Week 3 Literature Review assignment as a foundation for this assignment. Write a 6–8 page paper in which you:
Describe how the crisis impacted other businesses.
Choose an industry that was hit the hardest or one that benefited from the collapse and describe how managers in that industry responded to the events.
Provide examples of lessons managers need to keep in mind in the post-2008 business environment.
Explain whether or not an event of this magnitude could occur again, given regulations implemented after the crisis.
Explain if the American economy is weaker or stronger today as a result of the Lehman Brothers bankruptcy and resulting reforms, and provide an explanation.
Provide an example of how this monumental bankruptcy and the resulting credit crisis affected you or someone you know. For example, you could share a decision you made about your career or investments, or how someone you knew or their business or management decisions were affected.
Use five quality academic resources, three of which must come from your Week 3 Literature Review assignment