The day of the bankruptcy of Lehman Brothers – level 2
Lehman Brothers was one of the biggest banks in the United States. It invested a lot of money into mortgages. The bank invested 680 billion dollars, but its available money was only 22 billion dollars. It was a very risky situation because if the value of houses went down by only four percent, the bank would lose all its capital.
In 2008, the value of houses fell and the bank started to have big financial problems. The management asked the government for help but the government didn’t help.
On September 15, 2008, Lehman Brothers went bankrupt. It was the biggest bankruptcy in the history of the United States.
Difficult words: mortgage (a contract in which a bank gives you money to buy a house), capital (money or houses which a company has), go bankrupt (to be in a situation when you lose your business because you don’t have enough money), bankruptcy (a situation when you are bankrupt).
What do you think about this day?
LEARN 3000 WORDS with DAYS IN LEVELS
Days in Levels is designed to teach you 3000 words in English. Please follow the instructions
How to improve your English with Days in Levels:
- Do the test at Test Languages.
- Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.
- Read two new articles article at Days in Levels every day.
- Read one previous article too and check if you remember all new words.
- Listen to the new article and read the text at the same time.
- Listen to the new article without reading the text.
- Answer the question under the new article and write your answer in the comments.