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Question
Discussion Questions
1. Why did Lehman choose not to seek Chapter 11 protection for its subsidiaries?
2. How does Chapter 11 bankruptcy protect Lehman's creditors? How does it potentially hurt them? Explain your answers.
3. Do you believe the U.S. bankruptcy process was appropriate in this instance? Explain your answer.
4. Do you believe the U.S. government's failure to bail out Lehman, thereby forcing the firm to file for bankruptcy, exacerbated the global credit meltdown in October 2008? Explain your answer.
Answer
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