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Blind reliance on models killed Lehman Brothers. Math was just the tool they used to inflict lethal injury on themselves.

I have also seen strong arguments (but no concrete evidence yet) which suggest the government officials involved were pro-Goldman and anti-Lehman.

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Dick Fuld was never 'one of the boys': Lehman had a tortured past, and grew up after its spinout from American Express as a bond house, not an elite investment bank, and only began rising in the M&A league tables in the 2000s. Until then they made money and were good but never had the social status of the GS execs.

To the other commenter: Lehman was too terrified of its own capital base to participate in the LTCM bailout, but yes they didn't win any friends with that.

I heard that too (again without proof) - that Lehman (& Bear Stearns) refusal to participate in the LTCM rescue still rankled with other market participants.

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