Professor Elam

Another paper wonder if ‘saving’ Bear just encourages this kind of behavior.

Saving Long Term Capital Management LTCM in 1998 has perhaps only encouraged this type of highly leverage betting by ‘investment banks.’

The CFO of Lehman certainly takes  nice photo, but at age 42, her understanding of business history is a bit brief.  She states this is the worst it has been in 40 years.   Actually this is a repeat of what happened in 1972-74.  Capital shrunk along with trading profits as the Dow shrunk 50% from 1,000+ to 577 by December of 1974.  Along the way many brokerage firms were sold off or merged into others including White Weld which was acquired by Merrill and Goodbody, Dempsey Tegler, Underwood Neuhaus, Reynolds, duPont Walston, and many many others. I have proposed business history class here at UNT Dallas, perhaps Erin could start on the reading list.