Some Additional References on the Great Financial crisis and Lehman Brothers Bankruptcy Macro-economic environment A series of data

reports extracted from the World Bank Database See Excel spread sheet uploaded besides. Mortgaged Backed Issuance and Bonds Markets: http://www.investinginbonds.com/news.asp?id=3149&catid=36 Association of Financial Markets in Europe, useful in particular on derivatives statistics and rules: http://www.afme.eu/ Investment Banking and bank regulations Here is a good manual on Investment banking, hedge funds, private equity. It is necessary to read the first chapters with a longer historical perspective: until the mid 90s US bank mergers were under tight regulatory and anti-trust approvals. In the mid 80s continental European banks which had a universal model allowing the same judicial entity to run commercial banking, investment banking and asset management beefed up their investment banking franchise. This was seen as a threat both by large USA commercial banks and leading investment banks. One factor was the progressive sale of all UK merchant banks to other banks (example: Morgan Grenfell acquired by Deutsche Bank; JP Morgan acquired Jardine Flemming). Global competition including in the USA was a strong incentive for the USA and Japan to relieve the segregation of management and shareholding between banks (commercial banks) and securities houses (investment banks) dating back from the crisis of the 20s and 30s. http://www.amazon.co.jp/Investment-Banks-Private-Equity-Second/dp/0124 15820X/ref=sr_1_1?s=english-books&ie=UTF8&qid=1324289712&sr=1-1

Jean-Paul Leboutet December,16 2011

Site of the Bank of International Settlement (based in Basle). The regulations issued apply to international banks and institutions and domestic banks and institutions that national regulators design. The site provide the current capital regulation, definition of risks, the new system to be implemented (Basle III), and many statistics. Basle I was the initial capital regulation system. It required banks to maintain 8% of permanent capital in front of assets, valued from a simplified perspective of credit risk (weight 0 for sovereign risk, weight 20 for international institutions, weight 100 for corporates and others). Basle II kept the principle for credit risks but added a valuation of market risks (risk that the value of an asset like a credit, a bond, a derivatives contract, varies with changes in a market price) and operational risks (statistical losses due to systems, administrative errors and fraud). Basle III adds capital buffers and redefines the assessment of risks. http://www.bis.org/ Site of the US regulator for Investment Banks, the Securities and Exchange Commission. Its employee headcount has been around 4,000 through the last ten years despite explosion of financial markets activities. However, it is not to be increased in the future most probably, with the perspective of the sector laying off still for the years to come. This site is also useful to find the annual (10K) and quarterly (10Q) financial statements of public companies, through the system EDGAR. http://www.sec.gov/ Monetary Authority in USA: Federal Reserve Bank System (Fed). http://www.federalreserve.gov/ Site of the Japanese Financial Services Agency. Very useful on many subjects, not only Japan, through its working groups on current topics. Also, it gathered supervision information on all types of financial institutions in one place. http://www.fsa.go.jp/

Jean-Paul Leboutet December,16 2011

Great Financial Crisis Detailed timeline of the crisis: http://www.creditwritedowns.com/credit-crisis-timeline/ Repurchase Agreements used by Lehman Brothers and other banks alike. It is to be noted that the amounts didnt exceed 10% of total assets, which is enough to make the ratio of Debt to Equity appear controlled, but not enough to hide the growth nor mislead as to the weight of the bank in the market. http://periodicals.faqs.org/201101/2250366861.html

Lehman Brothers I dont recommend any book published on Lehman Brothers crisis so far. In my view and knowledge, none provide an objective description and analysis of the case. Some, if not the majority, are dangerously biased in a way or another. Even relations by former employees lack objectivity and perspective. Harvard Business School has published a business case. It is unusually and unfortunately of little use for the developments from 2006 to 2008, insisting on the history of the investment bank. The best source is therefore to be found in raw documents and reports of the time. Wall Street Journal article on September, 16 2008. http://online.wsj.com/article/SB122152314746339697.html Reuters article on December, 6 2011. Lehman Brothers exits chapter 11. http://www.reuters.com/article/2011/12/06/us-lehman-idUSTRE7B423S2011 1206?feedType=nl&feedName=usdai

Jean-Paul Leboutet December,16 2011