Lehman brothers, the ex-global financial service firm stated their view of what caused the financial crisis in 2008. Lehman set off the so called avalanche of bankruptcy in US, bringing a crisis on a worldwide scale.
Lehman now says it was misled by scores of nonprofit organizations. Just before the financial crisis Wall street banks sold an interest rate swaps (used as an insurance against interest rate fluctuations) to governments and nonprofits to lower their costs of borrowing. After the crisis those governments and nonprofits had to pay banks billions to exit the swap agreements.
As of right now Lehman charge 14% to unpaid swap debts. The company tries to raise as much funds as it can get from their creditors. The company exits bankruptcy in 2012, as having payed $47.2 billion with $65 billion to go by 2016. In this fight for cash, some of the former creditors reached to agreement but others still dispute it to the point that suing is the only option. The talks and legal options could take months.
Meanwhile, the KBW Bank index (serving as a benchmark of banking sector) is growing exponentially which is a favorable indicator for the bank sector state and good news for economy. Still, Lehman have a long way to go till they pay all they creditors. The bank index is recovering from a slight crush from yesterday and would probably close at positive at the end of the day.