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In the 1920s, Robert Lehman
perceived dynamic changes occurring in the nation's economy, and focused
the company on rapidly developing consumer industries such as retailing,
airlines and communications. Lehman Brothers was a strong supporter of
the entertainment sector and advised on the consolidation of major movie
theater chains. Start-up ventures, including film studios RKO, Paramount
and 20th Century Fox, benefited from financing arranged by the Firm.
Triggered by the stock market crash of 1929, the Depression placed tremendous
pressure on the availability of capital. Lehman Brothers was one of the
pioneers of innovative financing techniques such as private placements,
arranging loans between blue-chip borrowers and private lenders. These
loans offered strict safeguards and solid returns for lenders, while enabling
borrowers to raise much-needed capital. |
