Lehman Still Haunts Wall Street Efforts to Rebuild Broken Model
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Two years after Lehman Brothers Holdings Inc. collapsed under $613 billion of debt, investors are questioning whether the investment-banking model that fueled record profits in the middle of the decade can be repaired.
Of 10 banks with large capital-markets business units, only Goldman Sachs Group Inc. and JPMorgan Chase & Co. are trading close to their price on Sept. 12, 2008, the last day of trading before Lehman filed for bankruptcy. Citigroup Inc. has lost 78 percent, and Bank of America Corp. is down 59 percent. The average is a 23 percent decline, more than double the 10 percent drop in the Standard & Poor’s 500 Index over the same period.