Thursday, September 15, 2011, marked the third anniversary of Lehman Brothers failure, which occurred as doubts about the firm’s solvency caused other banks to stop providing short-term loans, leaving Lehman unable to conduct business.
Its collapse nearly brought down the US banking system and sent shock waves through the world economy that are still being felt today.
In the years after the Lehman collapse, the Federal Reserve pumped trillions of dollars into the US financial system to ensure solvency and to spur lending and investment.
But that failed to inject much life into the broader economy. Growth has slowed sharply in the first half of 2011 and the jobless rate remains stuck above 9 per cent.
On this third annivarsary of Lehman’s collapse troubles in the United States and Europe cast a pall over the prospects for global growth in recent weeks and have undermined confidence among investors, business and consumers.