Dec 30

Lehman Brothers Holdings Inc’s story

Investment Bank No Comments »

NEW YORK (Reuters) - Lehman Brothers Holdings Inc’s emergency bankruptcy filing wiped out as much as $75 billion of potential value for creditors, The Wall Street Journal reported on Monday, citing an analysis by the bank’s restructuring advisers.

A more planned and orderly filing would have allowed Lehman to sell some assets outside of bankruptcy court protection and would have given it time to unwind derivatives positions, according to the analysis by Alvarez & Marsal.

The Journal said it was too early to say how much money Lehman creditors would recover; it said unsecured creditors have asserted they are owed $200 billion.

Lehman filed for bankruptcy protection in September after the U.S. government declined to bail it out and a frantic weekend of negotiations to save the investment bank failed.

The Lehman meltdown touched of a stock market panic and credit crisis and was quickly followed by a government rescue of American International Group Inc, once the world’s largest insurer.

Lehman’s demise also ignited a wave of fire sales of other giant financial groups such as Wachovia Corp and Merrill Lynch & Co Inc.

Lehman executives were not immediately available to comment on the Journal report.

reuters.com

Sep 21

Lehman Brothers filed for bankruptcy

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Lehman Brothers Holdings Inc. is a global financial-services firm.

The firm does business in investment banking, equity and fixed-income sales, research and trading, investment management, private equity, and private banking.

It is a primary dealer in the U.S. Treasury securities market. Its primary subsidiaries include Lehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, Eagle Energy Partners, and the Crossroads Group.

The firm’s worldwide headquarters are in New York City, with regional headquarters in London, England, and Tokyo, Japan, as well as offices located throughout the world.

In Hong kong we see different situation

News update for this week 21 sept 2008

HONG KONG - Hundreds of people who made investments linked to failed U.S. investment bank Lehman Brothers have rallied in Hong Kong in hopes of securing their money.

Retirees and workers carrying investment papers marched to Hong Kong’s government headquarters Sunday, chanting slogans accusing regulators of not doing enough to protect their money.

Protester Brian Fong says he invested the equivalent of more than US$150,000 in a Lehman-linked bond. He says, “I’m afraid I will lose everything.”

Hong Kong’s Democratic Party, which helped organized the protest, said it drew about 800 people.

Lehman Brothers did not immediately return a call seeking comment. Billions of dollars in losses from souring debt forced the bank to file for bankruptcy earlier this week.

From news report