When did Lehman go bankrupt?
September 15, 2008
Lehman Brothers became bankrupt as a large part of their loan portfolio comprised of loans for buying real estate. With the meltdown in the property market in US the values of properties became lesser than the the value of loan outstanding. Due to this most of the loans became irrecoverable leading to bankruptcy of Lehman Brothers.
A company can only go bankrupt if it owes someone money and cannot pay. It had loans outstanding, and didnt have money to pay it back, it couldn't refinance its loands and couldn't get short term financing to temporarily pay the loan back. It also couldn't raise capital because its stock price had plummeted and no one had confidence in the bank. Hence it couldn't pay back whatever current portion of its debt that was…