March 29, 2024, 09:34:19 AM *
Welcome, Guest. Please login or register.

Login with username, password and session length
News: NEW CHILD BOARD CREATED IN THE POLITICAL SECTION FOR THE 2016 ELECTION
 
   Home   Help Login Register  
Pages: 1   Go Down
  Print  
Author Topic: "Lehman sets payouts to exit bankruptcy"  (Read 2464 times)
0 Members and 1 Guest are viewing this topic.
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« on: April 15, 2010, 05:15:24 PM »

Quote
Lehman Brothers Holdings Inc laid out a plan to repay creditors a portion of some $US1 trillion ($A1.07 trillion) in expected claims, under a proposal that could resolve the largest US bankruptcy in history.

Quote
Lehman's unsecured creditors could recover between 15 and 27 per cent of their claims while certain secured creditors could be paid in full.

General unsecured creditors of Lehman's parent company would receive 14.7 per cent while general unsecured creditors of Lehman Brothers Special Financing unit, which holds many of its derivatives positions, are expected to recover about 24 per cent.

Quote
Lehman estimated it has collected $US8.8 billion on derivative contracts and could recover an additional $US5.4 billion on outstanding contracts.

Lehman said it expected its real estate investments could return an additional $US11 billion through 2014 while its loans could recover $US7.2 billion and its private equity investments could generate $US9.6 billion.

Quote
When it filed for bankruptcy, Lehman listed more than $US600 billion of assets.

It quickly sold its biggest units like its core US brokerage and Neuberger Berman wealth management subsidiary, but hundreds of Lehman employees hired by the bankruptcy estate have been managing the company's long-term investments in real estate and private equity since the bankruptcy.

Banks which bought Lehman assets at the time of its collapse reaped windfalls in an emergency auction, a court-appointed examiner said.

The case is In re: Lehman Brothers Holdings Inc, US Bankruptcy Court, Southern District of New York, No. 08-13555.

http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-3-Lehman-sets-payouts-to-exit-bankruptcy-4JB6D?opendocument&src=rss

Why hold an 'emergency auction' before bankruptcy?

Where did the money go?

Who made all these windfall profits?  Did they profit at the expense of debt holders?
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #1 on: April 15, 2010, 05:20:16 PM »

Quote
NEW YORK/CHICAGO - Barclays Bank and Goldman Sachs reaped windfalls from an emergency auction of Lehman Brothers' derivatives portfolio, but the firms and the exchange that held the auction may be immune from any lawsuits, a court-appointed examiner said.

Still, a representative of the trustee for Lehman Brothers Holdings Inc in charge of liquidating customer assets said in bankruptcy court yesterday that the trustee may sue to recover some money lost in the auction.

An unredacted version of the examiner's report, released yesterday, for the first time identified the firms that took part in the auction and concluded "an argument can be made that the transfers at issue were fraudulent transfers", noting that Lehman lost $US1.2 billion ($A1.2 billion) in the sale. It took place just days after the firm's chaotic bankruptcy filing in September 2008.

Exchange operator CME Group Inc invited Barclays, Goldman, Morgan Stanley, JPMorgan Chase and Chicago-based trading firms Citadel LP and DRW Trading to take part in the auction, according to the unredacted court documents. All but Morgan Stanley took part.

On Wednesday, CME lost its bid to withhold the identities of the firms.

The auction "represented the first and only time the CME had conducted a forced transfer/liquidation of a clearing member's positions", the examiner's report said.

Each winning bidder that took over a piece of the Lehman portfolio did so at a gain, the documents showed.

Quote
"This was the first time the CME had to conduct an auction of this kind," CME Associate General Counsel Lisa Dunsky told the court before the ruling. "We hope that it doesn't happen again, but if it does, whether it's CME or any other clearing house, it is critical to have multiple qualified bidders who are willing to participate in the auction."

The Ole Bankers Club...

more here - http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-1-Firms-reaped-windfalls-in-Lehman-auction--4J3AR?opendocument&src=rss
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #2 on: April 15, 2010, 05:27:31 PM »

Quote
Court examiner says Lehman could sue over the fire sale of its assets

LEHMAN Brothers may have grounds to sue Goldman Sachs, Barclays and other firms that bought some of the collapsed bank's assets at a $US1.2 billion ($1.3bn) discount, a court-appointed legal examiner said.

Anton Valukas, the examiner appointed by Lehman's bankruptcy judge, said the fire sale of more than $US2bn of derivatives positions resulted in a "substantial loss" to Lehman, which filed for Chapter 11 protection on September 15, 2008.

As a result, Lehman may have a legitimate claim against "any of the firms that bought positions at a steep discount during the liquidation", he said.

The bust bank may also have a claim against the Chicago Mercantile Exchange (CME), the options and futures exchange that conducted the auction, Mr Valukas added.

Two days after Lehman collapsed, CME asked Barclays, Goldman Sachs, JP Morgan, Citadel, the hedge fund manager, and DRW Trading, a proprietary investor, to bid for five baskets of derivative positions held by Lehman: energy, foreign exchange, interest rates, equity and agriculture and alternative investments.

CME also held billions of dollars in collateral that Lehman had put on the positions.

The winning bidders demanded that in return for taking on the liability for Lehman's positions, they must receive more than the equivalent collateral in return.

Quote
According to Mr Valukas, Barclays received collateral worth $US335m more than the energy derivatives portfolio it bought in the auction.

Goldman Sachs netted a windfall of $US450m on the equity portfolio and $US140m on natural gas positions.

more here - http://www.theaustralian.com.au/business/news/court-examiner-says-lehman-could-sue-over-the-fire-sale-of-its-assets/story-e6frg90o-1225853961282

If Goldman and others had all this money laying around in 2008, why did they take the TARP money?  How many other deals like this do they make?

Is this how business is done on Wall Street?  The CME just decides to sell someone's assets?

Is this how the Democrat financial reform package will work?  'Anonymous' bidders invited to bid and nobody in the real world of Main Street knows about it?



Also sounds a lot like the IndyMac and OneWest deal.

Taxpayers always seem to loose.

Wasn't Lehman responsible for preparing a breakup of IndyMac?  Somehow, IndyMac gets sold whole to OneWest?
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #3 on: April 15, 2010, 05:31:40 PM »

Quote
THE assets of Lehman Brothers Holdings may be sold for at least $38.5 billion ($41.2 billion) within five years to pay creditors, the defunct investment bank has said in a court filing.

Lehman Brothers, which filed the biggest US bankruptcy in September 2008 with assets of $639 billion, has received claims from creditors for more than $800 billion.

http://www.smh.com.au/business/lehman-brothers-reorganisation-plan-values-assets-at-41b-20100415-shqq.html

How did Lehman go from $639 in 9/08 to just $38.5 billion today?

Secret auctions?
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
Pages: 1   Go Up
  Print  
 
Jump to:  

Use of this web site in any manner signifies unconditional acceptance, without exception, of our terms of use.
Powered by SMF 1.1.13 | SMF © 2006-2011, Simple Machines LLC
 
Page created in 6.122 seconds with 19 queries.