Lehman Brothers : Managing a Global Investment Bank (Page 2)

Abstract

Lehman Brothers (Lehman), a global investment bank, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Lehman has a major presence in equity and fixed income sales, trading and research, investment banking, private equity, and private client services. Despite its strong performance in the past few years, Lehman anticipates stiff competition from rivals like Goldman Sachs and Morgan Stanley.

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History contd...

Setting the stage for future global growth, Jacob Schiff, a Kuhn, Loeb partner, led the firm into investment-banking activities in Europe and Japan. At the turn of the century, Lehman was a founding financier of emerging retailers, including Sears, Roebuck & Company, F.W. Woolworth Company, May Department Stores Company, Gimbel Brothers, Inc. and R.H. Macy & Company.

Beginning in the 1930s, the increasing demand for oil set off waves of wildcat drilling in search of the resource. Companies like Halliburton and Kerr-McGee relied on Lehman for capital to fund their activities. The 1930s also witnessed the explosive growth of radio and the emergence of television. Lehman underwrote the initial public offering for DuMont, the first television manufacturer, and helped fund the Radio Corporation of America, known as RCA.

The end of World War II ignited an unprecedented era of prosperity, fueling the growth of consumer industries such as home appliances and auto manufacturing. Lehman became an important financial advisor and underwriter for many growing companies and established a number of long-term relationships that would remain active several decades later.

Economic expansion accelerated in the 1950s with the dawn of the Electronics Age. Lehman arranged start-up financing for companies such as Litton Industries. The firm also lent its expertise and advisory skills to Burlington Mills, Schenley Industries and American Export Lines. This period was also the beginning of the computer era. Lehman provided IPO underwriting for industry pioneer, Digital Equipment. ......

        Case Code   BSTA075
   Case Length    18 Pages
              Period    2003
 Organization     Lehman Brothers
        Pub Date     2003
Teaching Note    Not Available
     Countries    Global
      Industry    Investment Banking

Issues

Lehman; Investment banking; Fixed income; Derivatives and trading; Public issue; Equities; Capital markets; Liability management; Mergers and acquisitions; Restructuring; Private client services; Credit risk management; Risk management; Enterprise risk management (ERM)