- 15 Sep
What will be the Effect of the Bankruptcy of Lehman's Bank?
Lehman's, america's 4th biggest investment bank has apparently filed for bankruptcy triggering a wave of speculation about what the future effect will be on the rest of the world?
It would seem most likely that Lehmans assets will be sold off cheaply, driving down the price of similar assets which will only be bad news for the captial adequacy requirements (the ratio of capital that a bank needs to hold in support of the level of its lending) of may of the banks. This is likely to make the availability of money to borrow even more difficult for the man on the street.