Brexit: (Not) another Lehman moment for banks?

Dirk Schiereck*, Florian Kiesel, Sascha Kolaric

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

We analyze the stock and CDS market reactions around the UK's EU membership referendum (“Brexit”) on June 23, 2016, and the Lehman Brothers bankruptcy filing on September 15, 2008. We find that the short-run drop in stock prices to the Brexit announcement was more pronounced than to Lehman's bankruptcy, particularly for EU banks. Additionally, for EU banks, a large increase in CDS spreads can be observed. Yet, compared to the Lehman bankruptcy filing, this increase is still relatively small. For non-EU banks, we observe neither significant stock nor CDS price reactions.
Original languageEnglish
Pages (from-to)291-297
JournalFinance Research Letters
Early online date5 Sept 2016
Publication statusPublished - Nov 2016

Keywords / Materials (for Non-textual outputs)

  • Brexit
  • Lehman Brothers bankruptcy
  • banks
  • credit default swap
  • stock markets


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