Comparative analysis of liability cases for bankruptcies of financial institutions

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Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Anglų kalba / English
Comparative analysis of liability cases for bankruptcies of financial institutions
In the Journal:
Montenegrin journal of economics [MNJE]. 2017, 13, 3, p. 85-99
Reikšminiai žodžiai: Atsakomybė; Auditoriai; Finansų įstaigų bankrotas; Kredito unijos; Lehman Brothers; Lietuvos bankai; Lietuvos bankai ir kredito unijos; „Lehman Brothers“; Auditors; Bankruptcy of financial institutions; Credit unions; Lehman Brothers; Liability; Lithuanian banks; Lithuanian banks and credit unions.
Atsakomybė; Auditas / Audit; bankai; Finansų įstaigų bankrotas; Kreditas. Paskolos / Credit; Lehman Brothers.
Auditors; Bankruptcy of financial institutions; Liability; Lithuanian banks and credit unions; Lithuanian banks.
Summary / Abstract:

ENThe bankruptcy of the fourth largest investment bank in the world Lehman Brothers Holdings Inc. in 2008 remains the largest bankruptcy in the history of United States. This bankruptcy is viewed as a turning point in the Global Financial Crisis. Paradoxically, even though the financial system had many safeguards (auditors, audit committees, the board of directors, credit rating agencies, government supervisors) whose purpose was to inform the investing public about the actual financial situation of the institution, Lehman Brothers bankruptcy came as a shock to financial markets across the globe revealing that many of the “gatekeepers” failed. Comparative analysis of liability cases after bankruptcies of Lehman Brothers and financial institutions in Lithuania shows that contrary to Lehman’s case, the demise of financial institutions in Lithuania cannot be attributed to sub-prime mortgages caused financial crisis, real estate market fluctuations or any other external variable. Problems are related to weak supervision, inefficient regulation, and common unethical behavior in the financial sector. [From the publication]

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2021-02-02 19:03:37
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