Lehman brother, the founder of wall Street stock market and the fourth largest investment bank in USA,
Question:
Lehman brother, the founder of wall Street stock market and the fourth largest investment bank in USA, went into bankruptcy in 2008. The bankruptcy of LBs and the collapse of mortgage market in 2008 caused catastrophic economic ramifications on individuals, societies and businesses on both the domestic and global levels. In the view of Sharia'h objectives, the Islamic economic and financial system is not a value-neutral, it rather promotes variety of ethical and social values such as justice, fairness, trust, brotherhood, honesty and transparency. In addition, Islam promotes other economic principles such as genuine trade in real economy and risk sharing as well as it prohibits the transactions based on riba, gharar and maysir. In this assignment, students are required to answer the following four questions.
1) Based on the plot of the short movie 'The bank the bust the world', elaborate the reasons that led to the collapse of Lehman Brothers in 2008.
2) Outline the ramifications of the collapse of Lehman Brothers on individuals, societies and businesses on both the domestic and global levels.
3) Discuss the implications of Islamic values and principles on the well-functioning Islamic financial and banking system.
4) Outline your conclusion regarding the resilience of the Islamic banks and financial institutions against financial crisis as well the lesson that Islamic banks and financial institutions would derive from the experience of Lehman Brothers.
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez