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Leman Brother: The 2008 Financial Crisis

1087 Words5 Pages

1. Problem Definition
The financial crisis of 2008 was not a single event but a series of crises that rippled through the financial system and ultimately the economy.
Almost 9 year before Leman Brother start their biggest business by entering in to a major stake in Archstone Smith, a publicly traded real estate investment for $5.4 billion.
Lehman Brothers projected for the profit of more than $1.3 billion for the coming 10 year but due to unexpected financial problem leaman brother went bankrupt. source in the same time two bank worldwide start to compete for the title of world biggest bank wells fargo based on US and the second was ICBC both bank had their own problems due to their government rolls and regulation. wells made some …show more content…

Beginning in 1980, they diverged. By 2007, financial sector compensation was more than 80% greater than in other businesses—a considerably larger gap than before the Great Depression.

Source: Bureau of Economic Analysis, Bureau of Labor Statistics, CPI-Urban, FCIC calculations

2. Justification
Now Wells Fargo is one of the most powerful bank in united state not only because they increase their food print but since 2008 they did some other good initiative like merger with Wachovia mixing the management having a responsible manager for each franchises start of small business etc.. also Wells forgo didn't rush for the business to much but strategically they concentrate for the long term business and left mortgage business for the other compotator they just plan for long term …show more content…

finally method of cross-selling grant a big advantage to wells Fargo because cost of sell to an existing customer is 10% of the new customer because opening new account, marketing cost and other related costs while for existing customer since we have good margin 90% wells Fargo can offer cheaper price so his customer thus both party are the winner bank will provide more product for his existing customer and increase the revenue, while customer will receive a good discount as

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