The ‘new normal'

LEHMANS SPECIAL

Five years after the collapse of Lehman Brothers, Annabelle Williams takes a look at the harsh lessons learnt, and how investors have adapted to the changing landscape.

On 15 September 2008, the world’s fourth-largest investment bank, Lehman Brothers, collapsed. Its bankruptcy escalated the burgeoning financial crisis into the worst economic disaster the world’s financial markets had seen since the 1930s. In the UK, the FTSE 100 plunged by more than 5% on the Lehmans news alone, wiping £50bn off the value of Britain’s top 100 companies. Five years on, political leaders, regulators and investors alike are still grappling with the consequences of the financial crisis and learning from past mistakes. Value of liquidity One of the principle lessons lea...