Lehman BrothersOn September 10, 2008, Lehman Brothers announced the lowest decline when shares fell 45%. It left the market value at $5.4 billion after the Korea Development Bank refused to strike an investment deal that could save Lehman. The company will seek capital from other investors to recover their financial situation. These efforts failed, and the situation became more dire, even after the US government had already bailed out Bear Stearn, Fannie Mae, and Freddie Mac. Although it is less likely that the US government will maintain the Lehman bailout, there should be a resolution by the Federal Reserve to support Lehman's finances so as to prevent the economic decline of the United States.II Problems and ImplicationsLehman Brothers is one of the big four investment banks with 24,700 employees worldwide. For 157 years they survived the economic crisis, until recently, when they found themselves in debt after the subprime mortgage crisis. Lehman, which once reached a peak of $84 per share, has seen the value of its shares gradually collapse since the summer of 2007. After an unsuccessful negotiation with the Korea Development Bank, Lehman faced the lowest decline, equal at $14.15 per share on September 8. The next day, the stock value suddenly dropped by half to $7.79. To strengthen its financial situation, Lehman continued to look for potential suitors to save the company. Two of these include: Bank of America and Barclay. However, these institutions require a guarantee from the Federal Reserve on a portion of Lehman's troubled assets. It will not be easy for Lehman to be bailed out by the US government as the US government has already provided aid to Bear Stearns, another collapsing bank, and I just bailed out Freddie Ma...... middle of paper. ..... citizens may find it more difficult to obtain bank loans; the government should lower interest rates to stimulate investment. Talking Points - Assure Idahoans that the government will not raise tax rates or spend taxpayer money to prop up failed personal businesses - Encourage corporate investors in Idaho to diversify their investments across different banks to reduce risk - Stimulate investment and spending in Idaho by offering low interest rates. Chart Aids The Drop in Lehman Stock Price in One Year (September 2007 - September 2008) Source: http://topics.nytimes.com/top/ news/business/companies/lehman_brothers_holdings_inc/index.html?scp=1-spot&sq =lehman&st=cseSource:“Lehman faces growing pressure.” The Wall Street Journal. September 10, 2008: A1, A11. “Lehman staggers towards the end of the game.” The Wall Street Journal September 10, 2008: C20.