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And yet, Lehmann Brothers went tits up.
by JetSpiegel 9y ago
And yet, Lehmann Brothers went tits up.
- stephen_g 9y agoWell, of course banks can become insolvent (i.e if enough people default on their loans), which is why many governments now insure people’s deposits (up to a certain limit). But Lehman Brothers wasn’t a commercial (retail) bank, which is what I was describing. They were an investment bank, which generally don’t take deposits or directly offer loans.