industrial sickness and its symptoms: lehman brothers example
TRANSCRIPT
Industrial sickness is defined in India as "an industrial company (being a company registered for not less than five years) which has, at the end of any financial year, accumulated losses equal to, or exceeding, its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year"
1a : subjective evidence of disease or physical
disturbance; broadly: something that indicates the
presence of bodily disorder
b : an evident reaction by a plant to a pathogen
2a : something that indicates the existence of
something else symptoms of an inner turmoil
b : a slight indication
1. Persisting shortage of cash
2. Frequent request to banks and financial institutions for
loans;
3. Frequent turnover of personnel in the industry
4. Continuous tumble in the prices of the shares
5. Deteriorating financial ratios
Better prospects
Low Salary/ Wages
Long Hours of work
Employees feel stress from overwork and have a work/life
imbalance.
Mismatch between the job and person
Too little coaching and feedback
Few growth and advancement opportunities
Employees feel devalued and unrecognised
The fourth-largest investment bank in the United
States (2007)
Asset base of $639 billion (Before Bankruptcy)
158 years old
Survived the following events
1. World War I
2. The Great Depression
3. World War II
The leverage ratio of Lehman Brother(2007) was 44 : 1
Where as the leverage ratio of other investment banks such as
I. Goldman Sachs 26 : 1
II. Morgan Stanley 34 : 1
Lead to the Financial Crisis of 2008
Bailout of $700 billion
Iceland and Ireland went Bankrupt
15 American Banks went Bankrupt before the year ended
15 million jobs were lost in America
India saw a decline of 2.1% in growth
Estimated loss worldwide loss was $13 trillion