Keyword: Lehman Brothers

Should Credit Rating Agencies be Publicly Controlled?

Picture: Saliem Fakir - Credit rating is a weighty obligation. Credit rating agencies (CRAs) can either boost a country’s fortunes or bring it down. CRAs are privately owned agencies that specialize in investigating the credit worthiness (ability to pay back) of governments and companies. CRAs assign credit ratings for issuers of debt-like securities (such as, bonds in the case of governments) that can be traded. The record of CRAs, though, has been mixed and has been scrutinized for some time now. In 2003,...

Ex-Lehman Brothers Investment Banker Illustrates How Wall Street House of Cards Works

In this timely interview, one year after the closure of Lehman Brothers, which coincides with the anniversary of the global financial crisis, The Real News Network talks to Sony Kapoor, Managing Director of Kapoor is an ex-Lehman Brothers investment banker who now applies his skills for social benefit. He sheds light on the intriguing world of financial markets, exposing the house of cards we familiarly refer to as the international financial system. *** PAUL JAY: Welcome to...

Joseph Stiglitz on the Fall of Lehman Brothers

The reason Lehman Brothers went down is twofold, says Joseph Stiglitz. Not only were their assets bad, but their products were also very non-transparent. The company simply engaged in a great deal of accounting gimmickry and lost people's trust. Financial markets are based on trust says Stiglitz, and what happened with Lehman Brothers is a breakdown of trust. No one wanted to turn their money over to helping Lehman Brothers because they didn't know what Lehman's assets were worth.