Lehman bankruptcy filing wiped out billions: report

[inanna]

Source: Reuters

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.


Read more: http://www.reuters.com/article/topNews/idUSTRE4BS2ZQ20081229?feedType=RSS&feedName=topNews

[TrogL]

1. My brother-in-law is scared the same thing will happen with AIG

...and he'll be wiped out.

[sendero]

2. The theory here being that...

... if there were more time for an "orderly" sale, there would have been more proceeds. A theory that not many people believe is acutally true.

Worthless crap is worthless, it was worthless by the fall of 08 and it will be worthless forevermore.

[proud progressive]

3. OK, fine. someone please tell me who and how this 'orderly' process should have been conducted.

if this is true, then WHEN should this have happened? and, by lehman? by the gov? by who?

[SoCalDem]

5. LB was a competitor to Paulson's old "crew".. He probably had few qualms about shutting them down.nt

[choie]

4. thank god

that congress made it harder for us regular folks to file for bankruptcy!:grr: