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Lehman June 12
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Lehman Brothers’ Afterlife in India
Jun 11, 2015 | LiveMint
By Ashish Rukhaiyar
More than six years after Lehman Brothers Holdings Inc. collapsed, succumbing to the subprime mortgage crisis it helped fuel, the remnants of the former US bank’s investments in India continue to endure. Lehman owns shares in KSK Energy Ventures Ltd, an investment that is now valued at Rs.110 crore. -
Lehman Brothers Surrenders Broking Licence in India
Jun 11, 2015 | Business Standard
By Sachin P Mampatta
Nearly seven years after its collapse marked a catastrophic turn in an unfolding global financial crises, Lehman Brothers still retained the right to trade in Indian securities. On Wednesday, though, it surrendered its final broking membership, on the National Stock Exchange. Lehman was founded in 1850. It started with Henry Lehman... -
Ex-Lehman, Barclays Employee Fights For $2M Bonus
Jun 11, 2015 | Law360
By Jonathan Randles
A former managing director at Lehman Brothers Inc. on Wednesday defended his bid to recover a $1.9 million bonus, arguing that the claim wasn't wiped out when he accepted a job at Barclays Capital Inc. after it acquired the brokerage business. Ex-Lehman employee Richard Hajdukiewicz is among a handful of workers... -
Averting Risks In The Banking System Comes At The Cost Of Efficiency
Jun 11, 2015 | The Times (UK)
By Oliver Kamm
In Making It Happen: Fred Goodwin, RBS and the Men Who Blew up the British Economy, his grimly gripping account of the lender’s near collapse, Iain Martin describes the globalisation of banking. Dick Fuld, who later brought down Lehman Brothers, scouted in Europe in the late 1980s for opportunities for the investment bank to expand.
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Indian Securities
Ex-Lehman Personnel - Richard Hajdukiewicz
Book - Making It Happen: Fred Goodwin, RBS and the Men Who Blew up the British Economy
Full Text of Stories Below
-
Lehman Brothers’ Afterlife in India
Jun 11, 2015 | LiveMint
By Ashish Rukhaiyar
More than six years after Lehman Brothers Holdings Inc. collapsed, succumbing to the subprime mortgage crisis it helped fuel, the remnants of the former US bank’s investments in India continue to endure.
Lehman owns shares in KSK Energy Ventures Ltd, an investment that is now valued at Rs.110 crore.
Two Lehman Brothers funds—LB Mauritius III Ltd and LB Mauritius IV Ltd—collectively hold 6.24% in KSK Energy, a Hyderabad-based company engaged in thermal, hydro and solar power projects, according to data compiled by Capitaline, a corporate database. KSK shares ended trading on Thursday at Rs.41.50, valuing Lehman’s stake in the Indian company at nearly Rs.110 crore.
KSK Energy could not be immediately reached for further details on the stake held by the two funds and whether any attempts have been made to sell the shares. According to KSK Energy’s 2011 fillings to stock exchanges, the funds partly sold their stake when the Indian company had made an open offer. Thereafter, nothing has been disclosed publicly.
Lehman Brothers Securities Pvt. Ltd, the Indian brokerage unit of the US bank whose bankruptcy filing also marked the beginning of a global financial meltdown, on Wednesday surrendered its membership of the National Stock Exchange of India Ltd.
After Lehman Brothers filed for bankruptcy protection, a US government-appointed liquidator supervised the sale of all its assets.
According to market participants, large chunks of shares held by Lehman—popularly called Lehman blocks—were sold to various institutional investors in 2009 and 2010. Japan’s Nomura Holdings acquired Lehman’s Asian assets, but it’s not clear if the two funds mentioned above are held by the liquidator or Nomura.
At the time of its bankruptcy in 2008, Lehman Brothers held stakes in various Indian companies.
They include Sarda Energy and Minerals Ltd, Moser Baer India Ltd, KPIT Technologies Ltd, Emkay Global Financial Services Ltd, West Coast Paper Mills Ltd, Orchid Chemicals and Pharmaceuticals Ltd, Spice Mobility Ltd, Tulip Telecom Ltd, Cox and Kings Ltd, Edelweiss Financial Services Ltd, Anant Raj Ltd and Pioneer Embroideries Ltd.
Barring KSK, all Lehman holdings have been sold. While the bulk of its positions in the derivatives segment expired in September 2008 itself—the month it filed for bankruptcy—the firm held convertible bonds in many Indian companies, which later got converted into equity shares.
“Before the bankruptcy, Lehman had a big ‘convertible’ desk in India. It was among its largest desk along with that of proprietary trading. The equity shares were a result of the convertible instruments that were bought much before it went bust. For some time, the liquidator was in touch through the custodian but as time passed, active interest was lost,” said a person who helped sell some of the Lehman blocks. He did not want to be identified as he is not authorized to speak to reporters.
Capitaline data shows that Lehman shares in Moser Baer, Emkay Global, West Coast Paper, Orchid Chemicals, Spice Mobility and Pioneer Embroideries were all sold by December 2009. The stake held in these companies ranged between 1% and 4%. The stakes held in some of the other companies were sold in 2010...
For full story:
http://www.livemint.com/Companies/JDCZjTrTY0a0fBSEQTnH8L/Lehman-Brothers-is-dead-long-live-Lehman-Brothers.html
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Lehman Brothers Surrenders Broking Licence in India
Jun 11, 2015 | Business Standard
By Sachin P Mampatta
Nearly seven years after its collapse marked a catastrophic turn in an unfolding global financial crises, Lehman Brothers still retained the right to trade in Indian securities.
On Wednesday, though, it surrendered its final broking membership, on the National Stock Exchange.
Lehman was founded in 1850. It started with Henry Lehman, who immigrated from Germany to America in 1844. He opened a small general store in the city of Montgomery in Alabama the same year. His brothers, Emanuel and Mayer, joined him six years later and they named their venture Lehman Brothers. The firm grew to be one of the largest financial companies in the world.
Lehman’s final trade was on September 24, 2008. It had announced it would file for bankruptcy at the beginning of the week starting September 15, 2008. The BSE’s Sensex had closed at 14,000.81 on a Friday and fell nearly 500 points to close at 13,531.27 on the Monday the Lehman bankruptcy was declared. In the next six months, it fell an additional 5,000 points. The lowest point was on March 9, 2009, closing at 8,160.4.
Nomura, the Japanese financial services company, later acquired the India operations of Lehman...For full story:
http://www.business-standard.com/article/markets/formal-final-surrender-of-lehman-broking-licence-in-india-115061100830_1.html
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Ex-Lehman, Barclays Employee Fights For $2M Bonus
Jun 11, 2015 | Law360
By Jonathan Randles
A former managing director at Lehman Brothers Inc. on Wednesday defended his bid to recover a $1.9 million bonus, arguing that the claim wasn't wiped out when he accepted a job at Barclays Capital Inc. after it acquired the brokerage business.
Ex-Lehman employee Richard Hajdukiewicz is among a handful of workers who have fought to recover end-of-year bonuses they say they would have received had Lehman not filed for bankruptcy in September 2008. The trustee for LBI argues Hajdukiewicz, who left Barclays in 2008 with a severance package, says paying out the bonus would amount to a double recovery on his claim.
Among the objections the trustee has raised is the argument that Hajdukiewicz and other employees were compensated by Barclays through subsequent severance agreements. Hajdukiewicz countered Wednesday that the amounts paid out by Barclays are unrelated to his claim against LBI or the bonus he says he's owed.
“[Hajdukiewicz] had no duty to mitigate damages and there is no basis to contend that his severance agreement with Barclays benefited LBI,” his brief said. “The fact that LBI and Barclays were parties to an asset purchase agreement is irrelevant to the employee claim because there is no legal or factual basis to suggest that LBI assumed its agreement with Mr. Hajdukiewicz and assigned it to Barclays.”
“There is no basis to reduce the employee claim for amounts received from Barclays which were in satisfaction of Barclays’ separate obligation to Mr. Hajdukiewicz and are not attributable to amounts owed to him by LBI,” the brief continued.
Hajdukiewicz latest salvo in the fight over his bonus comes days after the LBI trustee James Giddens announced that the estate has agreed to pay nearly $1.3 billion to Barclays to settle long-running litigation over the sale of the collapsed investment bank's brokerage business and other assets.
The settlement, which must be approved by a bankruptcy judge, would resolve all outstanding legal claims between LBI and Barclays and would end six years of litigation between the parties. The settlement is a win for Barclays, which has said that it expects to recognize a pretax gain of approximately $750 million in its 2015 interim results because of the deal...For full story:
http://www.law360.com/articles/666891/ex-lehman-barclays-employee-fights-for-2m-bonus
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Averting Risks In The Banking System Comes At The Cost Of Efficiency
Jun 11, 2015 | The Times (UK)
By Oliver Kamm
In Making It Happen: Fred Goodwin, RBS and the Men Who Blew up the British Economy, his grimly gripping account of the lender’s near collapse, Iain Martin describes the globalisation of banking.
Dick Fuld, who later brought down Lehman Brothers, scouted in Europe in the late 1980s for opportunities for the investment bank to expand. He drew the line at Frankfurt in what was then West Germany, however. “No way,” Mr Fuld declared. “We’re never going behind the Iron Curtain.”...
Subscription needed for full story:http://www.thetimes.co.uk/tto/business/columnists/oliverkamm/article4466349.ece
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Indian Securities
Ex-Lehman Personnel - Richard Hajdukiewicz
Book - Making It Happen: Fred Goodwin, RBS and the Men Who Blew up the British Economy
Full Text of Stories Below
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