What was the main cause of Lehman Brothers' collapse?
Subprime mortgage crisis
Stock market crash
Bank run
Corporate scandal
Answer
The collapse of Lehman Brothers was largely due to its involvement in the subprime mortgage crisis and its exposure to less liquid assets. The subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009.
Beneath the Bankrupt: Exploring the Rise and Fall of Lehman Brothers - A Financial Journey
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