Founded in 1844 in Alabama, Lehman Brothers had been one of the most successful international financial services firms for over one and a half century. Lehman Brothers had survived through several of history’s toughest events, from the American Civil War to the Great Depression of 1930s and the two world wars. Furthermore, it was the fourth largest investment bank operating in the United States in 2007, when the Subprime mortgage crisis revealed itself to the world.
The housing prices climbing incessantly, coupled with the low interest rates set by the Federal Reserve, cleared the way for huge amounts of mortgage loans. The investment banks turned these loans into a bundle and sold it to the investors. From 2001 to 2006, it was the golden age for the investment banks, every year they were making remarkable profits at little costs. However, in 2006 the housing prices started going down, bringing with itself the largest economic meltdown that struck the Western economies since the 1930s.
This committee’s delegates will be comprised of the extended executive board of the Lehman Brothers, and they will try to steer Lehman Brothers Inc. through the 2007-2008 financial crisis and all the issues that come along with it.
Under-Secretary-General responsible: Emre Can Oral
Academic Assistant: İren Can Kuyucu
Stay tuned for the Study Guide.