The fall of failure of Bear Stearns caused the financial crisis
that shook the economy at the global level, and it almost brought
nations to the recession. For the case of Lehman Brothers, the
stock market crashed, causing a big problem on the S&P index.
The federal reserve of the US bailed this bank, which lacked 20
billion funds to hedge, and no one was willing to bail it out. The
treasury department helped Bear and Stearns bank by pumping more
money into the economy. The then-president of US Bush convinced
Congress to fund the Lehman Brothers. Even after the bailout, the
two banks still fell, and a lot of money was lost.
You're probably wondering where some of Lehman's key figures
are now. Former chairman and CEO Richard Fuld now runs Matrix
Private Capital Group, a firm he founded in 2016 after the collapse
of Lehman. The firm is an asset management firm that services
high-net worth individuals. Fuld sold an apartment in New York
City, as well as a collection of art he owned. He is still fairly
critical of the U.S. government for not bailing out Lehman Brothers
like it did with the other banks. At the time, officials said the
bank was much weaker than its peers and that the government was
unable to find a buyer for Lehman. Erin Callan Montella was in her
early 40s when she assumed the role of chief financial officer
(CFO) of Lehman. She resigned from the bank in June 2008 shortly
after it reported its second-quarter loss. She did a short stint at
Credit Suisse working with hedge funds. She decided to leave the
financial world altogether in 2009. Mantella wrote the book "Full
Circle: A Memoir of Leaning in Too Far and the Journey Back" about
her experiences before retiring from business.