Saturday, September 14, 2013

5 YEAR ANNIVERSARY OF THE BANKRUPTCY OF LEHMAN BROTHERS

5 Years Post-Lehman, Where Do the I-Banks Stand? (^DJI, ^GSPC, GS, MS)

From the Wall Street Journal:
Link: Wall Street Journal story on Lehman Bros collapse
The Lehman Brothers failure five years ago kicked off a period of economic tumult whose repercussions are still felt today.For a reminder of just how crazy that moment was, let’s step into the wayback machine with some of the key legal players from the biggest bankruptcy filing of all time.Center stage: an army of restructuring lawyers who over the course of one week pivoted from trying to set up a Hail Mary merger to preparing for the bank’s demise
Five years ago, on Monday September 15th, 2008 Lehman Brothers filed for court protection. “This was the biggest unplanned bankruptcy in bankruptcy history,” said Judge James Peck of the U.S. Bankruptcy Court in Manhattan, who oversaw Lehman’s Chapter 11 case.
In 2010 Bloomberg News covered the lawsuit filed by Lehman against Barclays. Harvey Miller was called to the stand. Miller oversaw the bankruptcy of Lehman and was visibly upset on the stand, while testifying about those traumatic days. During his testimony he described the pandemonium that took place in the days during the fall of Lehman Brothers. The Lehman collapse almost lead to a destruction of the world economy and did lead to the deepest recession since the Great Depression.
Recent quote by Miller, who reflected on the Lehman bankruptcy that took place 5 years ago.
“The bankruptcy case of Lehman was unprecedented,” says Harvey Miller, Lehman’s bankruptcy counsel. “It was the largest Chapter 11 case ever filed by billions of dollars. It was traumatic and extremely difficult.”
Harvey Miller on stand  during the Barclays Lehman lawsuit
describing the scene as Lehman Bros collapsed on September 15, 2008
US Bankruptcy Court, Lower Manhattan  April 28,2010


Rober Gaffey, representing Lehman's estate, questions Harvey Miller
during the Lehman Barclays hearing in US Bankruptcy Court, Lower Manhattan
David Boies representing Barclays, seated right
Below is a news story link about the subsequent lawsuit filed by Lehman against Barclays which relates to the court art above. 

Telegraph news story :
.......some were claiming the deal had gone sour. Lehman's estate alleged that BarCap ( Barclays) had got the broker-dealer operations on the cheap.  Between the legal argument and the obfuscation that is common in banking trials, Judge Peck will decide whether BarCap really did get "too good a deal" or whether Lehman is trying to rewrite the course of history.
Lehman v Barclays lawsuit story

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