Lehman Brothers has lost close to USD350million in a loan default on account of fraud by a medical consulting company, LTT Bio-pharma. Lehman Brothers claim that the loans were secured by Japan's trading giant, Marubeni Corp but has been denied by Marubeni Corp.
It is very very sad to see how huge ticket loans are distributed by these popular wall street firms without even knowing who has secured the loans. Probably these are the excesses committed by the Investment Banking firms over the last 3-4 years on the back of secular growth story in the investment banking world.
Not good time for Wall Street firms. Click here to read the story.