UNIVERSITRY OF CENTRAL PUNJAB

CORPORATE FINANCE
MBA EVENING Sec B
ASSIGNMENT 1 “TO BIG TO FAIL”

Submitted to Dr. Rubeena Tashfeen.

Submitted by Haroon Zafar Choudhry

Reg: L1F16MBAM0260
1. What was the movie all about?
 Movie “TO BIG TO FAIL” was a book written by Andrew Ross and it was based on true
story of 2008 financial crisis that was occurred in United States of America.
 Movie shows how different things were interacting with each other.
 In the film it was contrasted that U.S Treasury Secretary henry Paulson was trying to save
Lehman brothers from bankruptcy and other financial market of U.S
2.
How Lehman brothers collapsed and what were its effects to entire
financial market?
 Collapsed of Bear Sterns that was bought by JPMorgan Chase caused the threat to the
Lehman brothers.
 Lehman brothers tried to seek any investment available so that they can survive they
failed to get any investment to company
 Lehman brothers tired talking to bank of America regarding merger.
 Instead of merger with Lehman brother BOA merged with Merrill Lynch causing
Dick Fuld (CEO of Lehman Brothers) furious
 U.S Treasury Secretary Henry Paulson called an emergency meeting with all CEOs in
order to save the Lehman Brothers. During the meeting Henry Paulson told them that it
was their responsible too to save the Lehman Brothers, causing Barclay Banks to take
part to buy the stock. But unfortunately Barclay’s British regulator didn’t approve the
deal causing Henry Paulson toout of option, which he asked the Lehman Brothers to
going bankrupt.
 The falls of Lehman Brother has caused other banks in the queue of bankruptcy, knowing
this problem; Timothy Geithner proposed the entire bank to merge each other.
  French Finance Minister Christine Lagarde warns him that he must not allow AIG to fail.
Unlike Lehman, the Treasury rescues AIG with an $85 billion loan.
 AIG was an insurance company so if the AIG Fails the entire financial could have
collapsed.

3. What we learned from the movie?

 That how financial market works
 How important numbers are in organization
 What sort of plan a company should do to be saved by these kind of problems.
 As per my understanding financial position is very important for any company. Because
market trends follow Big organization if they fail entire economy might be at risk.
 It is very important for government to be involved in financial market to be stabilized
because it can be huge risk for economy.
 Country like Pakistan will not be able to survive such crises if occurs so long term
planning is very important and focus should be on improving value of currency.