 "Bank, Banking, PSBs")
On September 15, 2008, Lehman Brothers Holding Inc, the “too big to fail” fourth-largest investment bank in the United States, with 25,000 employees, $639 billion in assets and $613 billion in liabilities, filed for bankruptcy, triggering a global financial crisis.
The US government allowed the iconic investment bank to fail but bailed out AIG, even though both were involved in subprime mortgage financing. Incidentally, AIG’s $182-billion bailout happened in the same week that witnessed the Lehman collapse.
A week before that, the government took over two troubled mortgage guarantee firms, Fannie Mae and Freddie Mac. This, six months after it
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