Lehman and Merrill woes

[sipanivishal]

Hi David,

What effect will Lehman's bankruptcy have on campus placement at B schools ? Will I banks continue to visit this year or will they stop ? What happens to the employees in case of solvency and in case of the company being sold ?

Thanks
Sipani

P.S: Can you summarize the long term and short term effect of it ?

 

[sridhar]

David,

I've a somewhat related question -- I too was wondering about "Harper's take" on this mess -- not just Lehman and Merrill, but also Fannie and Freddie and possibly more to come:L

1. Is this a failure of risk management per se -- or is it the failure of the decision makers ignoring the conclusions reached by scrupulous application of risk management? Is it just "greed trumps everything?"

2. I can almost see these firms used as case study examples in future FRMs. Deep sigh!

3. Could risk management have saved this -- or is it the case, that you cannot just build strong enough levees to ward off such hurricanes?

I am interested in a FRM-centric perspective from a master explainer-in-chief like yourself!

--sridhar