American Morning

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September 15th, 2009
01:00 PM ET

Banks Gone Bust: Lehman Brothers one year later

It's been a year since Lehman Brothers went bust. It was the economic shot heard round the world.

Today we're asking – what really went wrong at Lehman? Have we learned anything from it and the financial collapse that followed?

CNN's Carol Costello has the report in the latest in our "Banks Gone Bust" series.

Filed under: Banks Gone Bust • Economy
soundoff (5 Responses)
  1. Margaret

    Wall Street has always defined what happens in the banking industry! As someone who worked for UK and Dutch international banking for over 20 years,on Wall street and Madison Ave., I can make this statement, as a matter of course and fact! Whenever, the so called geniuses, on wall street came up with a viable scheme that would be salable on global marketing as a commodity, such as the sub-prime/ ARM mortgage loans, the banking industry latched onto the band wagon. Hence, our dilemma! Moreover, the deregulations laws that took place, whereby brokerage houses could operate as bank institutions, formulated the recipe for the meltdown of the financial industry. In so doing, the careless and profit motive judgment by government, whereby, wall street would thrive and they both would profit, superseded the perils of the overall consequences and overall outcome.

    September 26, 2009 at 10:48 am |
  2. Jay

    This was a slice of life report packaged as representative of a general American anger. It is not. From the community you chose and people you interviewed to your final quote from Ronald Reagan, the message seemed to be that we just can't get along and the American sense of patriotism and community spirit are gone. It is just the reverse. As the reporter knows well from her work in studying and covering politics, the Obama election is the direct result of the greatest groundswell of political interest and community participation in generations. It was perhaps inevitable that many in communities that more closely resemble the less diverse, less mobile and economically fragile town profiled in your report would support more traditional candidates during the election and, having lost, feel disempowered. But this anger, however heartfelt, is not the result of being cut out of the political process or ignored by the administration. Rather, it is what happens when the group out of power is frustrated by the result and rather than engaging in constructive dialogue–perhaps because they are unsure how to do so–instead retreats further into itself. The people in communities such as these are ill-served by their political leaders. Instead of stoking the fires of anger, they should console their constituencies, help them identify and articulate their needs in a specific and meaningful way and then dive into political dialogue with all parties so that their communities are well-represented. It is that type of cooperation–not a desperate nostalgia for times that never were–that is so greatly needed by every American, from a high school football game coach in Western Pennsylvania to 1600 Pennsylvania Avenue. Shame on CNN for taking a cue from competitor Fox and perpetuating a myth of a divided America. You won't win Fox's viewers that way but you may well lose the rest of us.

    September 21, 2009 at 8:54 am |
  3. R. T. Nelson

    I did not hear all of former president Carter's comments about all of the flack that President Obama is getting; however, I have always said that it is either one or two things for the way the people are acting. It is either "hate" or "demiscration." Either way you slice it, it is so sad that there is so much hate in the would that a person of color can not get a fair chance because of the color of his/her skin. As for the people who say NO, it is not because of the color of his skin, race has nothing to do with it. "PUT YOURSELF IN HIS SHOES." Mr. President has be fought on everything he has tried to do. "Oh, he is trying to do too much." "Oh, he is not doing enough." If anyone can do better in the length of time that he has been in office, please step up to the plate? Thank you.

    September 16, 2009 at 2:34 pm |
  4. Hector

    Wall Street is not to blame for the banks going bust– the banks are. They let the homes appreciate faster than normal. Normally, houses appreciated 7% per year. The banks control this in appraisals. They let home prices go from 150,000 to 200,000, to 250,000 to 300,00 and higher within just two or three years. And they let this continue for years.

    September 16, 2009 at 8:07 am |
  5. George

    I believe that there is rules and regulation in every business including the government and if a person break that rule then a course there need to be action take. If not then what will stop the next person from from doing the same thing. in the private sector that will be call gross disrespect and can result into a termination. So my question unto you. Do you think that Congressman Joe Wilson is above rules and regulations?

    September 16, 2009 at 7:53 am |