Lehman Brothers was founded way back in 1850 by three brothers, and it quickly became one of the most respected investment banks on Wall Street. It was known for its innovative approach to finance and its aggressive expansion into new markets. But, as we all know, with great power comes great risk, right?
Fast forward to the early 2000s, and Lehman Brothers was riding high, making record profits and expanding its operations globally. But, behind the scenes, the bank was taking on massive amounts of debt and investing in subprime mortgages that would eventually become toxic assets. It's like they say, pride comes before a fall, and Lehman Brothers was about to take a mighty tumble.
