Lehman Brothers Allowed to Fail In Order To Save JP Morgan?

In a recent blog post (linked from the image below) by Ron Kirby, Ron outlines a fairly controversial, but interesting theory driving the dissolution of Lehman Brothers.  I stand fully committed to the idea that what really brought Lehman Brothers down was a failure in corporate governance, as I noted in an earlier post: Corporate Governance: Redefining Independance.

However, after the board failed to save the firm from “the gorilla” Dick Fuld, I would be interested to learn if this argument around JP Morgan’s abuse of the situation by offloading its own toxic assets onto Lehman’s bankrupt balance sheet carries any weight.

To read the full post just click on the image below.

Conspiratorial theory about the events that led to Lehman Brothers demise, and concurrently to the rescue of JP Morgan

Conspiratorial theory about the events that led to Lehman Brothers demise, and concurrently to the "rescue" of JP Morgan

Source:
And the Band Played On
Rob Kirby, Financial Sense®, September 22, 2008
http://www.financialsense.com/Market/kirby/2008/0922.html

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One Response to Lehman Brothers Allowed to Fail In Order To Save JP Morgan?

  1. euandus says:

    I think the failure of Lehman’s corporate governance was evinced in back in the summer of 2008 when the top execs viewed the market rather than the stockholders as “demanding that we hold ourselves accountable,” according to Skip McGee. I’ve just finished a blog post arging that while self-accountability is a laudable goal, we can’t (or shouldn’t) rely on it. In fact, “holding ourselves accountable” suggests the absence of accountability through corporate governance.

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