Lehman Bros

Type: Public (NYSE: LEH)
Founded: Montgomery, Alabama (1850)
Headquarters: New York City
Key people: Richard S. Fuld, Jr., Chairman & CEO, Joseph M. Gregory, President and COO
Industry: Investment services
Products: Financial Services, Investment Banking, Investment management
Website: www.lehman.com

General Information

Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. It is a primary dealer in the U.S. Treasury securities market. Its primary subsidiaries include: Lehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, and the Crossroads Group. The Firm's worldwide headquarters are in New York City, with regional headquarters in London, and Tokyo and offices throughout the world.

94 - Present

In 1993, under newly appointed CEO, Harvey Golub, American Express began to divest itself of its banking and brokerage operations. It sold its retail brokerage and asset management operations to Primerica and in 1994 it spun off Lehman Brothers Kuhn Loeb in an initial public offering, as Lehman Brothers Holdings Inc. Lehman Brothers Holdings Inc's. common stock commenced trading on the New York & Pacific stock exchanges, under the ticker symbol 'LEH'.

Following their 1994 IPO, the company was repeatedly subject to rumors that it would be acquired; rumors the company regularly denied. Indeed, under the leadership of the Firm's CEO, Richard S. Fuld, Jr., the firm has prospered, growing well beyond its initial strength in fixed income trading and research, bolstering its investment banking and equities franchises, as well as growing internationally, which now accounts for approximately 40% of revenue. In addition, in 2001, the firm acquired the private client services, or 'PCS', business of Cowen & Co. and later, in 2003, aggressively re-entered the asset management business, which it had exited in 1989.

Neuberger Berman LogoBeginning with $2 billion in assets under management, the firm acquired The Crossroads Group, Lincoln Capital Fixed Income Management and Neuberger Berman. These businesses, together with the PCS business and Lehman's private equity business, comprise the Investment Management Division, which generated approximately $2.4 billion in net revenue and over $500 million in pre-tax income in 2006. Today, the firm has in excess of $230 billion in assets under management. Altogether, since going public in 1994, the firm has increased net revenues over 500% from $2.73 billion to $17.6 billion and increased employee headcount over 200% from 8,500 to almost 26,000.