• founded in 1850 by Henry Lehman & his 2 brothers Emanuel and Mayer

• Started as a general store that sold mostly dried goods

• They were the 4th largest investment bank in the U.S.

Scandal

• bankruptcy in September 2008

• Brothers invested excessively in mortgage and took up numerous loans

• Hid over $50 Billion in loan by altering their accounting work

• REPO 105: accounting maneuver that classifies a short term loan as a sale to reduce liabilities

People Involved

• CEO: Richard Fuld

• CFO: Erin Callan signed & approved faulty accounting

• Auditor: Ernst Young paid 10 million for their settlement

• Employees 25,000 lost their jobs

• Investors

• Banking & Financial Industry