The Lasting Impact of Lehman's Collapse: Lessons for the Global Financial Industry
The collapse of Lehman Brothers in 2008, fueled by risky mortgages, led to a global financial crisis. In response, regulations were implemented to protect consumers and stabilize the mortgage market. The Consumer Financial Protection Bureau established new standards for safe loans, prohibiting risky practices and requiring income verification. However, concerns remain about the future of these regulations, as legal challenges and potential privatization of mortgage finance firms could weaken oversight and lead to a return to risky lending practices.
