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FRIDAY, NOVEMBER 27, 2009
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Lehman Files Biggest Chapter 11 Ever

Bankruptcy sends shockwaves through financial world

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(Newser) – Lehman Brothers gasped its last breath this morning, filing for Chapter 11 protection in Manhattan under a crushing $613 billion in debt, the largest—and potentially most frightening—bankruptcy in US history, reports Bloomberg. Experts say the filing is likely to trigger a domino effect in the US economy.

Lehman was felled by the collapse of the mortgage-securities market it helped create, and a possible rescue by Barclays and Bank of America fell apart this weekend, signaling its death knell. Lehman owed hundreds of millions to banks in Asia, had lost 94% of its value over the past year, and has struggled to raise funds as its reputation waned. Lehman has about 25,000 employees worldwide.

The Federal Reserve Bank of New York, where high level meetings were held in a last attempt to save Lehman Brothers, is photographed Sunday, Sept. 14, 2008.
The Federal Reserve Bank of New York, where high level meetings were held in a last attempt to save Lehman Brothers, is photographed Sunday, Sept. 14, 2008.   (AP Photo/David Karp)
Lehman Brothers headquarters is seen on Wednesday, Sept. 10, 2008 in New York.
Lehman Brothers headquarters is seen on Wednesday, Sept. 10, 2008 in New York.   (AP Photo/Jin Lee)
This Jan. 22, 2007 picture shows Lehman Brothers Holdings Inc. Chairman and Chief Executive Officer Richard Fuld, Jr.
This Jan. 22, 2007 picture shows Lehman Brothers Holdings Inc. Chairman and Chief Executive Officer Richard Fuld, Jr.   (AP Photo/Kevin Wolf)
The offices of Lehman Brothers are seen in London, Monday, Sept. 15, 2008.
The offices of Lehman Brothers are seen in London, Monday, Sept. 15, 2008.   (AP Photo/Kirsty Wigglesworth)
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