The venerable Wall Street firm Lehman Brothers collapsed into
bankruptcy nearly one year ago, sparking the worst financial crisis
since the Great Depression.
The court action on September 15,
2008 shook bankers, officials and investors, and caused one of the
worst stock market declines in history.
The global crisis in
confidence meant banks were reluctant to make loans, investors pulled
money out of markets, and economic activity slowed.
Over the
following weeks and months, economic officials tried to restore lending
by slashing interest rates, making emergency loans to banks and using
other means to prop up other faltering banks, money-market funds and
other institutions.
After one year, many economies appear to
be returning to growth, though unemployment is high in many nations and
is likely to continue rising in the United States.
The crisis
prompted calls for more effective regulation of financial markets, and
demands that banks hold larger reserves to cover possible loan
defaults. There also is debate over changing the huge bonuses paid to
bank executives so top bankers are rewarded for the long-term growth of
the company -- not just short-term profits at high risk.
Some information for this report was provided by AFP and Reuters.
