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Lehman July 14
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Lehman Aims to Return $1.89B More to Brokerage Creditors
Jul 13, 2015 | Dow Jones - Daily Bankruptcy Review
By Joseph Checkler
The trustee unwinding Lehman Brothers Inc. is seeking court permission to pay nearly $2 billion more to the defunct brokerage's unsecured creditors, which would be the third such distribution since he paid off the brokerage's customers. In a Monday filing with U.S. Bankruptcy Court in Manhattan, trustee James W. Giddens... -
Lehman Creditors' Recovery May Soon Reach $7.8 Billion
Jul 13, 2015 | Reuters
By Jonathan Stempel
The trustee liquidating Lehman Brothers Holdings Inc's brokerage unit on Monday asked a federal bankruptcy judge for permission to distribute another $1.89 billion to unsecured creditors, boosting their total recovery to $7.78 billion.James Giddens, the trustee, said the creditors will have recouped 35 cents on the dollar, up from 27 cents so far... -
Lehman Bros. Trustee Seeks $1.9B Creditor Payout
Jul 13, 2015 | Law360
By Jonathan Randles
The liquidating trustee for Lehman Brothers Inc. on Monday requested permission from a New York bankruptcy court to distribute approximately $1.89 billion to unsecured general creditors who have asserted valid claims against Lehman's failed brokerage firm. If approved, the distribution would push the total payout to LBI's unsecured general... -
Lehman Bros Bankruptcy Trustee Seeks $1.89 Billion Distribution To Unsecured Creditors
Jul 14, 2015 | AP (in Fox News)
A trustee for the bankrupt investment bank Lehman Brothers Inc. is seeking court approval to make another distribution, totaling $1.89 billion, to unsecured creditors in the case. Lehman's bankruptcy in September of 2008 signaled the start of the global financial crisis and was a major catalyst of the financial meltdown. It was the largest... -
Lehman Creditors' Recovery May Soon Reach $7.8 Billion
Jul 13, 2015 | Vocal Republic
By Jeff Hudson
New york city The trustee reducing Lehman Brothers Holdings Inc’s broker item on Monday questioned analysis insolvency ascertain for ability to disseminate another $1 dollar.89 billion tends car collectors, pushing such a full recovery to really 7 dollars.78 billion. James Giddens, the trustee, said credit card companies should have recouped... -
Lehman Liquidators Looking To Distribute A Further US $1.9 Bln
Jul 14, 2015 | ejinsight
Liquidators are seeking permission from a federal bankruptcy judge to distribute another US$1.89 billion to unsecured creditors of Lehman Brothers Holdings Inc., the giant investment bank blamed for triggering the 2008 global financial crisis after it declared the biggest bankruptcy in US history. -
Former Lehman Brothers CEO To Auction High-Dollar Sun Valley Property
Jul 13, 2015 | Idaho Statesman
Richard Fuld, the last chairman and CEO at the bankrupt investment firm Lehman Brothers, plans to auction his massive Big Wood River Estate in Sun Valley. The 71-acre property was previously listed at $59.5 million. Concierge Auctions, which specializes in luxury property auctions, estimates the property will sell for between $30 million ... -
Free Lunch: How Europe Invented Too Big to Fail in Greece
Jul 13, 2015 | Financial Times
By Martin Sandbu
...So why didn't everyone just let Greece default in 2010, offering perhaps some loans to cover deficits (only one-tenth of the actual loans were used for this purpose), and let the chips fall where they may? Partly for selfish reasons - some of those chips concerned other eurozone country banks...
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Full Text of Stories Below
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Lehman Aims to Return $1.89B More to Brokerage Creditors
Jul 13, 2015 | Dow Jones - Daily Bankruptcy Review
By Joseph Checkler
The trustee unwinding Lehman Brothers Inc. is seeking court permission to pay nearly $2 billion more to the defunct brokerage's unsecured creditors, which would be the third such distribution since he paid off the brokerage's customers.
In a Monday filing with U.S. Bankruptcy Court in Manhattan, trustee James W. Giddens said he wants to pay $1.99 billion to the creditors. If approved, that would bring the total amount returned to more than $8 billion, a recovery of about 35 cents on the dollar. Combined with distributions made to customers, the total amount recovered in the brokerage's liquidation would be around $114 billion.
"We have come a long way from the beginning of the liquidation when the mere existence of a general estate was in doubt," Mr. Giddens said. "The wind-down of the estate continues in earnest, and we will continue to resolve outstanding issues so that all remaining available assets can be fully distributed."
Mr. Giddens will ask a bankruptcy judge to authorize the distribution at an Aug. 4 hearing.
In the filing, Mr. Giddens's lawyers said that after the third distribution, further payouts would be contingent on winning or settling pending litigation, which would free up funds currently on reserve.
The trustee began paying back creditors---former employees, pension funds, banks and investment firms with unsecured claims against the brokerage---last summer after making the brokerage's customers whole.
The distinction between "customer" and "creditor" is a crucial one in the Lehman case. Customer claims get paid before creditor claims under the law covering failed broker-dealers, the Securities Investor Protection Act of 1970.
Customers get 100% of their money back, while unsecured creditors get much less.
As Mr. Giddens has resolved and settled more claims, he has asked a judge to approve distributions to the creditors.
Individual customers of the U.S. brokerage, which is under the purview of the bankruptcy court but not technically in bankruptcy protection, received about $92.3 billion almost immediately after Lehman collapsed. In all, Mr. Giddens has already paid more than $106 billion to customers and has said he has already exceeded his goal of distributing $110 billion to creditors and customers.
Lehman, once the nation's fourth-largest investment bank by assets under management, collapsed into the largest bankruptcy ever in September 2008 with $613 billion in liabilities.
The filing sent markets into turmoil and helped trigger a global financial crisis. Lehman's brokerage business was quickly sold to Barclays PLC (BCS), and the company's New York-based holding company officially exited bankruptcy in 2012...
For full story:
http://bankruptcynews.dowjones.com/Article?an=DJFDBR0120150713eb7diudc7&cid=3005003&ctype=hs&from=News&ReturnUrl=http%3a%2f%2fbankruptcynews.dowjones.com%2fArticle%3fan%3dDJFDBR0120150713eb7diudc7%26cid%3d3005003%26ctype%3dhs%26from%3dNews -
Lehman Creditors' Recovery May Soon Reach $7.8 Billion
Jul 13, 2015 | Reuters
By Jonathan Stempel
The trustee liquidating Lehman Brothers Holdings Inc's brokerage unit on Monday asked a federal bankruptcy judge for permission to distribute another $1.89 billion to unsecured creditors, boosting their total recovery to $7.78 billion.
James Giddens, the trustee, said the creditors will have recouped 35 cents on the dollar, up from 27 cents so far, if the proposed third payout wins approval from U.S. Bankruptcy Judge Shelley Chapman at an August 4 hearing in Manhattan.
"This result, in the largest broker-dealer insolvency in history, could not have been anticipated in the dark days of the financial crisis when this liquidation began," Giddens said in a court filing.
Lehman had been Wall Street's fourth-largest investment bank before seeking Chapter 11 protection on Sept. 15, 2008.
Roughly 111,000 former customers of the brokerage have already been paid more than $106 billion, and senior creditors have also been paid in full.
Giddens said the latest payout includes $1.18 billion that he had held in reserve.
He said this included $583 million for disputes over Barclays Plc's hurried purchase of much of the brokerage unit a few days after the bankruptcy filing. Those disputes were settled on June 5...
For full story:
http://www.reuters.com/article/2015/07/13/lehman-creditors-idUSL2N0ZT16J20150713 -
Lehman Bros. Trustee Seeks $1.9B Creditor Payout
Jul 13, 2015 | Law360
By Jonathan Randles
The liquidating trustee for Lehman Brothers Inc. on Monday requested permission from a New York bankruptcy court to distribute approximately $1.89 billion to unsecured general creditors who have asserted valid claims against Lehman's failed brokerage firm.
If approved, the distribution would push the total payout to LBI's unsecured general creditors to approximately $7.8 billion, which would represent a 35 percent distribution on their claims, liquidating trustee James Giddens said. LBI, along with other Lehman units, filed for bankruptcy in September 2008 and represents the largest broker-dealer bankruptcy in history.
“With this third distribution to unsecured general creditors of nearly $2 billion, we have come a long way from the beginning of the liquidation when the mere existence of a general estate was in doubt,” Giddens said in a statement. “The wind-down of the estate continues in earnest, and we will continue to resolve outstanding issues so that all remaining available assets can be fully distributed.”
Monday's filing comes weeks after U.S. Bankruptcy Judge Shelley Chapman signed off on a $1.3 billion settlement between LBI and Barclays Capital Inc. that resolved a dispute over the sale of the collapsed investment bank's brokerage business, saying it will benefit Lehman creditors.
Judge Chapman said at the time that LBI's settlement with Barclays will allow the estate to claim hundreds of millions of dollars the estate might have needed to forfeit had a deal not been reached. That recovery is far greater than any amount LBI employees could have received had the estate pursued litigation against Barclays on the workers' behalf, she said.
Last week, Giddens moved to wipe out a claim worth at least $61.5 million brought by FirstBank Puerto Rico, arguing that a recent Second Circuit decision over a federal law protecting securities investors prevents the bank from recovering anything from the estate.
In a letter to Judge Chapman, attorneys for the trustee said FirstBank's claim is barred because the bank cannot be considered a “customer” of the firm under the Securities Investor Protection Act. FirstBank's claim is tied to government securities it “entrusted” to LBI before Lehman imploded in 2008. The securities were intended to be used as collateral for a series of interest rate swaps...For full story:
http://www.law360.com/articles/678478/lehman-bros-trustee-seeks-1-9b-creditor-payout
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Lehman Bros Bankruptcy Trustee Seeks $1.89 Billion Distribution To Unsecured Creditors
Jul 14, 2015 | AP (in Fox News)
A trustee for the bankrupt investment bank Lehman Brothers Inc. is seeking court approval to make another distribution, totaling $1.89 billion, to unsecured creditors in the case.
Lehman's bankruptcy in September of 2008 signaled the start of the global financial crisis and was a major catalyst of the financial meltdown. It was the largest bankruptcy in U.S. history, with Lehman listing $639 billion in assets at the time.
Unsecured creditors are normally among the last to get paid in a bankruptcy case, and they often receive only a percentage of the total amount owed if anything. A spokesman for Trustee James W. Giddens said unsecured general creditors in this case might include former employees, pension funds or banks, among other parties.
Total payments to unsecured general creditors will add up to about $7.8 billion if the bankruptcy court approves this third distribution. Two previous payments have already been made, and the third will bring the total paid to about 35 percent of what is owed.
Secured and priority creditors were first in line for distributions. Counting those claims, total distribution to creditors in the case would surpass $8 billion with the latest allocation to unsecured creditors...
For full story:
http://www.foxnews.com/us/2015/07/13/lehman-bros-bankruptcy-trustee-seeks-18-billion-distribution-to-unsecured/ -
Lehman Creditors' Recovery May Soon Reach $7.8 Billion
Jul 13, 2015 | Vocal Republic
By Jeff Hudson
New york city The trustee reducing Lehman Brothers Holdings Inc’s broker item on Monday questioned analysis insolvency ascertain for ability to disseminate another $1 dollar.89 billion tends car collectors, pushing such a full recovery to really 7 dollars.78 billion.
James Giddens, the trustee, said credit card companies should have recouped 35 pennies for a greenback, from a little 27 penny at this point, when the suggested 1/3 payment succeeds confirmation from United states.S. Bankruptcy Judge Shelley Chapman are prone to August 7 listening to in Manhattan.
“This lead, inside the most popular broker-dealer financial ruin ever, cannot have already been looked forward to at midnight times of the economic crisis if this financial ruin commenced,” Giddens said inside a court docket processing.
Lehman was Wall Street’s fourth-largest funding financial institution before searching for Chapter 11 safety on Sept. 15, 2008...
For full story:
http://www.vocalrepublic.com/lehman-creditors-recovery-may-soon-reach-7-8-billion/19766/
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Lehman Liquidators Looking To Distribute A Further US $1.9 Bln
Jul 14, 2015 | ejinsight
Liquidators are seeking permission from a federal bankruptcy judge to distribute another US$1.89 billion to unsecured creditors of Lehman Brothers Holdings Inc., the giant investment bank blamed for triggering the 2008 global financial crisis after it declared the biggest bankruptcy in US history.
The payout will boost the amount of money recovered from the collapse to U$7.78 billion.
James Giddens, a trustee liquidating the bank’s assets, said creditors will have recouped 35 cents on the dollar, up from 27 cents so far, if the proposed third payout is approved, according to Reuters.
More than 111,000 former clients have been paid more than US$106 billion while senior creditors have been paid in full.
The latest payout includes US$1.18 billion Giddens had held in reserve. About US$583 million of that money were allocated for disputes over Barclays Plc.’s hurried purchase of much of the brokerage unit a few days after the bankruptcy filing...
For full story:
http://www.ejinsight.com/20150714-lehman-liquidators-looking-to-distribute-a-further-us1-9-bln/
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Former Lehman Brothers CEO To Auction High-Dollar Sun Valley Property
Jul 13, 2015 | Idaho Statesman
Richard Fuld, the last chairman and CEO at the bankrupt investment firm Lehman Brothers, plans to auction his massive Big Wood River Estate in Sun Valley.
The 71-acre property was previously listed at $59.5 million. Concierge Auctions, which specializes in luxury property auctions, estimates the property will sell for between $30 million and $50 million. The auction will be conducted without a reserve price.
The property features three timber and rock residential structures: a main house with service quarters; a guest house; and a gate house at the private entrance. The property is bordered by 2,100 feet of river frontage as well as the slopes of Bald Mountain.
The Lehman Brothers’ 2008 bankruptcy was one of the first falling dominoes that triggered the Great Recession. TIME Magazine named Fuld “One of the 25 People to Blame for the Financial Crisis,” saying he “steered Lehman deep into the business of subprime mortgages.”
“Lehman even made its own subprime loans,” TIME said...
For full story:
http://www.idahostatesman.com/2015/07/13/3893654_former-lehman-brothers-ceo-to.html?rh=1
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Free Lunch: How Europe Invented Too Big to Fail in Greece
Jul 13, 2015 | Financial Times
By Martin Sandbu
A deal, of sorts, was concluded by the euro countries' top leaders this morning. As I wrote in a quick take for the FT comment pages, Alexis Tsipras avoided having to send Greece's fairest one hundred maidens in tribute to Berlin. Apart from that, however, the agreement looks remarkably like the debt bondage of old, complete with a grab on assets thrown into the mix. Among the most curious elements is the fact that Europe's most elevated politicians find it appropriate to spend their time signing off on such specifics as the competitive conditions of the Greek bakeries sector. Read the final document in full, as it will take time for everyone to digest the content.
...So why didn't everyone just let Greece default in 2010, offering perhaps some loans to cover deficits (only one-tenth of the actual loans were used for this purpose), and let the chips fall where they may? Partly for selfish reasons - some of those chips concerned other eurozone country banks. But the main motivation was fear. The Greek sovereign debt crisis came to a head 18 months after the bankruptcy of Lehman Brothers. The ensuing seizure of global financial markets had scared the living daylights out of policymakers. Struck by Lehman Syndrome, they proceeded to act as if every debtor, no matter how small and non-systemic, was too big to fail. That included Greece in May 2010, and it included bust Irish banks six months later.
Lehman Syndrome was not policy wisdom but a decision making disorder. Just understanding a little of what Lehman actually did is enough to see why neither a peripheral European sovereign nor an Irish bank could topple the financial system the way Lehman could. Lehman was a big player in the tri-part repo market and therefore was indeed a key hub in global financial markets. (Whereas Athens was no hub at all but a final destination for loans financing excessive consumption; and Anglo Irish Bank was a final destination for loans thrown into overvalued Irish housebuilding.) Never heard of the tri-party repo market? Not to worry: the New York Fed's economics blog recently published posts on the origins of the market and how it turned into a cauldron of bubbling systemic risk. In brief: Lehman's bankruptcy at a stroke undermined the expectations of the most important market through which banks channel cash between one another.
This is technical stuff, but of huge political importance. Proper economic research finds that, unlike with Lehman, there was no reason to fear much contagion from a Greek default in 2010. The ill-fated choice to treat Athens as if it were Lehman is at the root of everything that has later gone wrong in the eurozone. The price is being paid for it now - but it would be fairer if those who shared in the mistake also share in the cost.
For full story:
http://www.ft.com/intl/cms/s/3/a02dddb2-2946-11e5-8db8-c033edba8a6e.html#axzz3fqg2Vmrx
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Unsecured Creditors
Sun Valley
Comment - Greece
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