This down- fall of huge companies like Lehman, AIG, Bear Stearns, Freddie Mac & Fannie Mae, Merril Lynch is not just a failur of the financial systems, but also a massive leadership failure across the financial services landscape and the policy makers. These collapses of big Financial Institute have a far reaching effort in Economics like India. This type of leadership lapse dates to 1980s when companies began to align executive compensations with share-holder interest. Excessive interest in personal financial goals as against the larger interest of the organization is one of the root-cause of this debacle. Another point is that many managers choose not be lead at all. They? believe that if they hire smart people, give huge insentive for personal results, the management of the firm would take care of itself. Under such circumstances, taking risks to achieve personal goals even? if that puts other or organixation in danger seems acceptable. These particular leadership failures have been a major cause of this full-scale meltdown of US financial sector