The Last Days Of Lehman Brothers

Richard S. Fuld Jr. was under siege in mid-July. His renowned investment bank, Lehman Brothers, was barraged with questions about whether the expanding credit crisis would engulf the bank and wipe out investors.
Signs of worry abounded. The company’s shares had plummeted, its debt had been downgraded, and investors were increasingly worried about a Lehman default. It was a downward spiral that mirrored the demise of Bear Stearns(A very strong Investment Bank) four months earlier.
In the months leading up to Lehman’s downfall, the proposal was just one of many floated by Mr. Fuld as he embarked on a frenetic and increasingly desperate attempt to keep his 158-year-old investment bank alive.
To save Lehman, Mr. Fuld called blue-chip companies and discussed mergers with a competitor, the worst situation in which a company would like to be.
Mr. Fuld is likely to face some tough questions about the final months and days of Lehman, the company collapsed last month and was sold off in pieces to buyers including Barclays and Nomura.

Though Lehman was the smallest investment bank when it failed — and regulators decided it was not too big to fail — its demise set off tremors throughout the financial system that reverberate to this day. The uncertainty surrounding its billions of dollars of transactions with banks and hedge funds contributed to the freezing of credit markets that has forced governments around the globe to take steps to try to calm panicked markets, including guaranteeing bank deposits.
Lehman executives complain bitterly that any chance of keeping the firm alive began to dissipate rapidly just after Labor Day when JPMorgan Chase, which handled Lehman’s trades, came calling for more money. Lehman had put down securities it believed were worth $6 billion during the summer to assuage the bank’s concerns that its trades were risky. But JPMorgan thought those securities had deteriorated in value, and asked for $5 billion in cash or liquid assets.

So we can say that JPM had assets but conspired against Lehman's dislocating a very big International Firm.

Questions have been ploughing around Fed bank as it brought reforms to save Banks like Morgans and Goldmans(although the same remidies were required to stabilize Lehamns).

So as to keep up in market Lehman officials approached many banks including Ping An International and HSBC.
Lehman also proposed to sell some of its assets to Mr. Warren Buffet who actually bought some assets of Goldman Sachs, but rejected the deal as policy said by Buffet was unacceptable..

At last it can only be summed to say that if due steps would have been taken the Lehman's would have been in the market with the market more stable then it is now....................