How Lehman Brothers Bankruptcy May Effect You

Lehman Brothers Holdings, Inc. has just filed the biggest bankruptcy filing in history of this country. 

The 158-year-old firm, which has 25,000 employees survived the railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management just a decade ago, was forced to filed a Chapter 11 bankruptcy petition with the U.S. Bankruptcy Court in Manhattan today.

The collapse of Lehman will likely have huge impact on other companies and individuals who relied on Lehman for financing.

How It May Affect You

Because Lehman financed many home mortgages, most banks will likely cut back on their lending to consumers for personal credit and mortgages.  We can also expect a slow down in mortgage rates being slashed, however most likely rates will not increase.