Items Tagged with 'Bankruptcy of Lehman Brothers'

ARTICLES

  • Lehman Case Could Impact Global CDO Payouts

    Last September, Lehman Brothers filed the biggest bankruptcy case in US history. Now, an upcoming decision by a US bankruptcy judge could set a precedent for how entities are paid when one of the parties in a collateralized debt obligation (CDO) becomes insolvent. The case pits Lehman against Bank of New York Mellon [stock BK][/stock] UK subsidiary BNY Corporate Trustee Services, acting on behalf of Australian asset manager Perpetual Investments, who entered into a credit default swap with Lehman.
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  • Freddie's Missing $1.2 Billion

    Hey, buddy, can you spare a billion? I know, I know -- bad joke. But last week, Freddie Mac asked the bankruptcy judge handling Lehman's bankruptcy to investigate $1.2 billion in claims it says Lehman hasn't yet paid. That's not a small chunk of change, for one thing. From Reuters, who reported on the story: Freddie Mac, which was bailed out by the U.S. government last month, said it is missing $1.2 billion from two fund transactions conducted in August, according to court documents.
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  • The Blame Game: Lehman CEO Fuld Talks

    Richard S. Fuld Jr., in his first public appearance since Lehman Brothers Holdings Inc. collapsed in September, said in a sworn testimony before a Congressional panel on Monday that while he took full responsibility for the failure of the company he led, he still believed all his decisions "were both prudent and appropriate" at the time.
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  • Congress Begins Hearings, Will Look for Blame

    Henry Waxman (D-CA), chairman of the House Committee on Oversight and Government Reform, announced late last week that his committee will hold five hearings in October on the financial meltdown, signaling the start of a Congressional witch hunt to determine who is most to blame for the mortgage and financial ills that now threaten the broader U.S. economy.
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  • After Lehman Collapse, Industry Eyes Shift to Aurora

    So Lehman is down for the count. The stock market is tanking to the tune of a 500 point drop in the Dow Jones Industrials, when this story was published. But those in the mortgage industry are wondering about the fate of a different company: Littleton, Colo.-based Aurora Loan Services, a Lehman subsidiary and lender/servicer that faces an increasingly uncertain future as its corporate parent enters restructuring.
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  • Lehman Goes Bankrupt; Wall Street Swoons

    Lehman Brothers Holdings Inc. [stock LEH][/stock] filed for bankruptcy late Sunday night, the largest corporate bankruptcy in U.S. history -- dwarfing WorldCom Inc.'s insolvency in 2002. The Wall Street firm was done in by the very mortgages that helped it climb to new heights in recent years.
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  • Paulson: No Federal Money for Lehman

    Looking to cut off speculation that any sale of floundering Lehman Brothers Holdings Corp. [stock LEH][/stock] might need to involve federal dollars, Treasury secretary Henry Paulson on Friday was reportedly adamant that any effort to sell the Wall Street investment bank not use government funds.
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  • At Lehman, the Good, Bad -- and Ugly

    Lehman Brothers [stock LEH][/stock] said Wednesday morning that it expects to lose $3.9 billion in the third quarter, a loss of $5.92 per share, the largest quarterly loss in company history. Driving the loss are $5.6 billion in net write-downs on residential mortgage and commercial real estate positions, the company said in a press statement. That's the bad news.
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