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The principal cause of the Lehman demise was market concerns about the capital adequacy of the firm rather than liquidity, CESR notes in its assessment, although it may be many months, or even years, before the full impact of the Lehman Brothers default can be understood.
CESR has tried to provide a coherent picture of the challenges that exist on the securities field, regulatory and industry responses, and the principles that should guide further work.
CESR underlines that the case illustrates regulatory challenges that already existed and are not specific or exclusive to Lehman Brothers.
The assessment is attached below.