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Ethics Surrounding the Lehman Brothers' Downfall

I need help with questions that are related about Lehman Brothers down fall!

Did the Lehman Brothers engaged in illegal or unethical behavior? Did Lehman Brother's allowed or encouraged malfeasance or questionable acts?
What's the difference between "illegal behavior" and unethical behavior?
How unethical behavior impacts work performances today?
Who usually initiates the unethical behaviors?

Thank you.

Solution Preview

Lehman Brothers engaged in both illegal and unethical behavior. The company had indulged in massive accounting fraud this is illegal. At the same time the company had used short term deposits for making long term loans/investments. This is unethical. Also the use of Repo 105 transactions to boost the banks financial position is unethical and illegal. Lehman Brothers encouraged malfeasance and questionable acts. Way back in 2003 and 2004, Lehman Brothers acquired subprime lenders BNC Mortgage and Aurora Loan Services. These companies gave loans to borrowers without full papers. The company encouraged malfeasance and questionable acts.
The difference between illegal behavior and unethical behavior is that illegal behavior is one that violates the law. On the ...

Solution Summary

Immoral business at Lehman Brothers is explained in a structured manner in this response. The answer includes references used.