Lehman was born to a
Jewish family in
New York City. He was the son of
Philip Lehman (1861–1947) and grandson of
Emanuel Lehman, a cofounder of
Lehman Brothers investment bank, and Carrie Lauer (1865–1937). He graduated from
Hotchkiss School in 1908 and was a 1913 graduate of
Yale University, where he was a member of
Delta Kappa Epsilon fraternity (Phi chapter). When his father retired in 1925, "Bobbie" Lehman assumed the leadership role of the family-owned business. He took over the bank during a time when Lehman Brothers, like its competitors
Goldman Sachs and
Morgan Stanley, was essentially a one-office firm. While sound financial principles were essential, Robert Lehman was often quoted as saying that he "bet on people." One of those people he believed in was
Juan Trippe who would build
Pan American World Airways into an industry powerhouse. Robert Lehman understood that to maximize Lehman Brothers' growth he needed additional investor capital. While still maintaining voting control, he was the first to invite non-family members to become partners. He understood too that the right partners could expand the company's opportunities through interlocking directorships. As such, he sold an interest in Lehman Brothers to
John D. Hertz who had sold his
Yellow Cab Company and
The Hertz Corporation for a fortune and who sat on the board of directors of
General Motors. Under Robert Lehman, the bank concentrated on rapidly developing consumer industries with financing deals arranged in retailing, airlines, and the entertainment business notably with the Keith-Albee-Orpheum theatre group 1928 deal that sold the majority of its stock to
Joseph P. Kennedy which led to the creation of
RKO motion picture studios. And, when Lehman put together start-up financing for
Paramount Pictures, John D. Hertz would be their connection on Paramount's board. Robert Lehman guided his company through the perils of the
stock-market crash of 1929 and the ensuing
Great Depression of the 1930s. Post-war, he grew the company substantially, expanding to
Paris,
France, to meet the financial needs of his clients with international operations. In the process, he made himself one of the wealthiest people in the United States. ==Thoroughbred horses==