What Was Lehman Brothers? Lehman Brothers was a global financial services firm. It provided investment banking, trading, investment management, private banking, research, brokerage, private equity, and associated services. The firm was one of the largest investment banks in the United States until Sept. 15, 2008, when it declared bankruptcy. Its failure was largely caused and
What Is the Lehman Formula? The Lehman formula is a compensation formula developed by Lehman Brothers to determine the commission on investment banking or other business brokering services. Lehman Brothers developed the Lehman Formula, also known as the Lehman Scale Formula, in the 1960s while raising capital for corporate clients. Key Takeaways Lehman Brothers developed
What Is a Lemon? A lemon is a very disappointing investment in which your expected return is not even close to being achieved, and more than likely ends up costing you some or all of the capital committed. Lemon investments can be associated with poor money management, economic factors, financial fraud, or just plain bad
What Are Lemon Laws? Lemon laws are regulations that attempt to protect consumers in the event that they purchase a defective vehicle or other consumer products or services, referred to as lemons, that do not meet their purported quality or usefulness. Lemon laws apply to defects that affect the use, safety, or value of a vehicle
What Is a Lender? A lender is an individual, a group (public or private), or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees. Repayment may occur in increments (as in a monthly mortgage payment)
What Is Lender of Last Resort? A lender of last resort (LoR) is an institution, usually a country’s central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the United States, the Federal Reserve acts as the lender of last
What Is a Leprechaun Leader? A leprechaun leader is a derogatory term for a corporate manager or an executive who, like the fabled Irish elf, is a mischievous and elusive creature said to possess buried treasure of money and gold. In the case of a leprechaun leader, an executive or other corporate leader embezzles money
What Is Leptokurtic? Leptokurtic distributions are statistical distributions with kurtosis greater than three. It can be described as having a wider or flatter shape with fatter tails resulting in a greater chance of extreme positive or negative events. It is one of three major categories found in kurtosis analysis. Its other two counterparts are mesokurtic
What Is a Lessor? A lessor is essentially someone who grants a lease to someone else. As such, a lessor is the owner of an asset that is leased under an agreement to a lessee. The lessee makes a one-time payment or a series of periodic payments to the lessor in return for the use
What Is a Letter of Comfort? A letter of comfort—also known as a letter of intent or a solvency opinion—is a written document that provides a level of assurance that an obligation will ultimately be met. In its traditional context, a letter of comfort is given to organizations or persons of interest by external auditors regarding statutory
