Lehman Brothers Holdings Inc was a global financial institution that played an important part in the financial and commercial history of the United States for more than 150 years. It was found in 1850 by Henry, Emanuel and Mayer Lehman and was the largest investment bank in the US. Its headquarters was in New York and it was dealing with investment and private banking. On September 15, 2008, it created a record bankruptcy in American history. The following day, part of it was bought by British Barclays Bank. The US government then decided to leave the institution to its fate and not help rescue it, as in the case of Bear Stearns. Stock exchanges subsequently dropped, with bank titles losing tens of percent every day.
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Lehman Brothers had humble origins, tracing its roots back to a small general store that was founded by German immigrant Henry Lehman in Montgomery, Alabama in 1844. In 1850, Henry Lehman and his brothers, Emanuel and Mayer, founded Lehman Brothers.  They began trading cotton. Henry Lehman died in 1855, but the family ran the business with only family members as partners until the 1920s (Harvard College, 2012). As the cotton industry boomed, so did Lehman Brothers. Lehman benefited from the dearth of banking in the Deep South and stepped in to supply credit to local farmers. As business grew, Lehman expanded into other commodities and opened a New York office in 1858. 
In 1862, faced with civil war problems, the firm joined John Durr's cotton merchant to create Lehman, Durr & Co. After the war, the company helped finance reconstruction in Alabama. The firm 's headquarters eventually moved to New York City to help establish the New York Cotton Exchange in 1870. The company also dealt with the emerging market for railway bonds and later entered financial-advisory …show more content…
The LBHI bankruptcy filing on 15 September 2008 set off a chaotic sequence of events around the world, including the filing for administration by Lehman Brothers International (Europe) that same morning and the subsequent appointment of a SIPC trustee for Lehman Brothers, Inc., on 19 September 2009.
Lehman Brothers bankruptcy on September 15, 2008 triggered panic on the money market that provides short-term loans, because businesses around the world are funding there daily spending, including salaries. Panic left the company without cash and ravaged the accounts of millions of people.
After reporting bankruptcy, the global financial markets were panicked, stock exchanges began to fall sharply. At the brink of bankruptcy, there were other major financial institutions that had to be saved by governments all around the world. The financial and credit crisis have had a major negative impact on all sectors of the economy, causing the fall of growth of economies across the globe, which governments later sought to stimulate by various measures.