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Lehman Aug 21
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Election 2016: Jeb Bush And John Kasich’s Work At Lehman Spotlights Different Revolving Door Between Business and Government
Aug 20, 2015 | International Business Times
By David Sirota
Republican presidential rivals Jeb Bush and John Kasich bring to their campaigns their experience as governors of major battleground states, but they also share a resume line from their time in the private sector. The Florida and Ohio pols both worked at the ill-fated Wall Street investment bank Lehman Brothers just as the firm was racking up... -
United Kingdom: Lehman Brothers, the Judicial Gift that Keeps on Giving…..
Aug 20, 2015 | The National Law Review
By Jennifer Moore
It is undeniable that the legal complexities, and unprecedented facts, of the long running Lehman Brothers saga have generated a wealth of legal principal, most notably through the Waterfall series of litigation. Against the background of administration, this trilogy (creatively named Waterfall I Application, Waterfall I Appeal and...
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Aug 20, 2015 | International Business Times
By David Sirota
Republican presidential rivals Jeb Bush and John Kasich bring to their campaigns their experience as governors of major battleground states, but they also share a resume line from their time in the private sector. The Florida and Ohio pols both worked at the ill-fated Wall Street investment bank Lehman Brothers just as the firm was racking up vast losses for their states' respective pension systems.
While Kasich has denounced Wall Street greed and Bush has criticized lawmakers who become lobbyists, during their time at Lehman they leveraged their public sector experience -- Bush as a former governor and Kasich as a former nine-term congressman -- to help the bank build relationships and navigate public policy matters.
Those roles spotlight a lesser-known revolving door between corporations and government.
Rather than becoming traditional lobbyists, “these kind of people serve as door openers,” said Jeff Hooke, an investment banker who worked at Lehman Brothers in the 1990s. “Sometimes it’s hard for a normal investment banker -- even a senior guy -- to get a CEO or a finance minister to return his calls to present them with a new idea, so a guy like Jeb Bush, whose name is instantly recognizable or has lots of contact from his fundraising days or governorship or his family -- he’s going to get his calls returned.”
Bush and Kasich received big Lehman paychecks as the bank’s mortgage-backed securities decimated the investments intended to support their states’ retired workers, and today, both are getting financial support for their presidential campaigns from donors they worked with during their time at Lehman.
Neither Bush nor Kasich was registered to lobby for Lehman on regulatory matters. A spokesman for the Kasich campaign, Scott Milburn, told International Business Times that Kasich “was in the investment banking division” and “worked as part of coverage teams across a variety of sectors” doing mergers and acquisitions, initial public offerings and other financial deals.
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But in the 2016 presidential race, Kasich and Jeb Bush’s tenures at Lehman represent the most prominent version of the trend.
‘They Want These Kind Of People For Their Rolodex’
Kasich was hired to help run Lehman’s investment banking operation in January 2001 despite, by his own admission, having “close to zero” knowledge of the business. He was, however, a longtime ally of the financial industry during his 18 years in Congress. He voted for legislation to eliminate regulations on banks like Lehman. The month before he got the job at Lehman, Kasich sponsored a bill to allow Social Security money to be invested in financial firms -- including inevitably Lehman -- that stood to make hundreds of billions in profits had it passed.
Over his congressional career, Kasich was rewarded for that allegiance with more than $330,000 worth of campaign contributions from the securities and investment industry, according to data compiled by the Center for Responsive Politics. When he left Capitol Hill for a job as a managing director in Lehman’s Columbus office, those who worked with him said he operated as a relationship-builder and political navigator -- not someone charged with pressuring federal regulators.
"He was known in the Midwest,” said Kasich’s Lehman boss Gary Weinstein in an interview last year with the Cleveland Plain Dealer. “We introduced John to all of our bankers and said, 'Here's a guy who knows more about Washington than any of us here. If anyone wants to work with him, there's no charge to you. If you're a young banker and you want to have some gravitas in the room, you might want John.'"
For full story: http://www.ibtimes.com/election-2016-jeb-bush-john-kasichs-work-lehman-spotlights-different-revolving-door-2061128
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United Kingdom: Lehman Brothers, the Judicial Gift that Keeps on Giving…..
Aug 20, 2015 | The National Law Review
By Jennifer Moore
Latest Lehman judgment reassures end users on Close-out Rights
It is undeniable that the legal complexities, and unprecedented facts, of the long running Lehman Brothers saga have generated a wealth of legal principal, most notably through the Waterfall series of litigation.
Against the background of administration, this trilogy (creatively named Waterfall I Application, Waterfall I Appeal and the upcoming Waterfall II) has generated both legal precedent and gems of dicta in relation to a broad range of matters. To name a few, the Waterfall cases have covered issues as varied as the ranking in insolvency proceedings of subordinated debt, foreign currency claims, non-provable debts, statutory interest and unlimited companies and look set to continue to be a breeding ground for legal authorities for the foreseeable future.
The Waterfall trilogy may have grabbed the lions share of media attention but we should be careful not to overlook the importance of the other judgements elicited from the Lehman administration, most recently in the matter of Fondazione Enasarco v Lehman Brothers Finance S.A. and another [2014] EWHC 34 (Ch).
...Given the ensuing status of the 1992 ISDA Master Agreement as the “go to” agreement for transactions of this nature and its resulting prevalence in the financial arena, the application of the judgement in Fondazione could be far reaching in the wider financial markets. The subject matter may not be as headline friendly as other Lehman offspring but it is a significant case in its own right .
For full story: http://www.natlawreview.com/article/united-kingdom-lehman-brothers-judicial-gift-keeps-giving
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