Yesterday, Federal Reserve Chairman Ben Bernanke told the Financial Crisis Inquiry Commission there was nothing his department could do to keep the investment banking giant from failing. He told the commission charged with investigating the U.S. financial crisis he did everything possible. However he also said he regretted giving the impression the Fed might be able to save the firm and should have been more direct in that regard. Bernanke has been oft criticized for not doing more to the keep the 150 year old firm from going under and setting off a dramatic declines in the credit markets.
The failure of Lehman Brothers had a ripple effect on both Wall Street and main street. Many individual investors lost their life savings as a result of investing in Lehman bonds, preferred stock and other products backed by Lehman Brothers debt. Much of the debt was packaged in structured notes such as Principal Protected Notes (PPN), Return Optimization Notes and other innocuous sounding products. Many investors feel they were misled as to the true risk associated with these products and have file arbitration claims through the Financial Industry Regulatory Authority (FINRA).
The attorneys at Colling Gilbert Wright & Carter are currently investigating and litigating dozens of claims against firms including UBS, Wells Fargo, Charles Schwab and Merrill Lynch related to the sale of Lehman backed products. If you feel you have lost money in a Lehman Brother’s related investment vehicle, please contact our office for a free case evaluation.