Six years ago this month, financial services firm Lehman Brothers filed the single largest bankruptcy filing in U.S. history. Lehman held over $600 billion in assets at the time of the Chapter 11 filing, and the company’s bankruptcy resulted in a significant drop in the stock market. Analysts consider the Lehman Brothers bankruptcy to be one of the events that threw the country into recession.
This week, U.S. Treasure Secretary Jack Lew issued a statement marking the anniversary, and celebrating the economy’s comeback over the last six years.
“Six years ago this month, our financial system was shocked to its core,” Lew said. “The damage this crisis unleashed spread throughout our economy, and the result was massive job loss, waves of business failures, devastating home foreclosures, decimated retirement accounts and an economy on the brink of another Great Depression. It was set in motion by weaknesses in our system – including irresponsible leverage, excessive risk-taking, reckless and too often predatory lending, and inadequate oversight.”
Lew went on to credit President Obama with pursuing the financial reform that turned the economy around. Lew said international confidence in the U.S. is once again robust, financial institutions are more transparent, and there are more rules in place to protect taxpayers, investors and consumers.
“Because of the immediate crisis response, the effective policies put in place by the Federal Reserve, the resilience of the American people and the determination of our businesses, our economy is stronger today than it was when the crisis erupted,” Lew said. “In addition, our financial system is more stable and more resilient.”
Lew said he anticipates the economy will continue to recover, and cautioned against lax financial regulations.
“Looking ahead, we will continue down the path of reform,” Lew said. “If we can say anything from today’s vantage point with absolute certainty, it is that our financial system is dynamic and much safer than before the crisis due to the policies we have put in place, but unforeseen threats to stability are bound to emerge, and the need to remain vigilant will always be ongoing.”
The national economy is recovering but if you are having personal financial problems contact the law firm of Joel R. Spivack, Esq. for a free consultation today. He has been helping South Jersey residents file for personal bankruptcy protection for more than two decades.
