Lehman Bankruptcy Won't Be Pretty
Last weekend we wrapped Regulation in San Jose so I'm all too familiar with bankruptcy law. Secured creditors up to 100%, unsecured, government, blah blah blah. Point being, I sincerely hope Lehman creditors aren't holding their breath.
Maybe the Goldman boys will toss a few million at them to keep things quiet? Speaking of which, why isn't this being treated as a murder investigation instead of a bankruptcy?
Administrators of the London arm of Lehman Brothers said the claims it is handling against the collapsed Wall Street bank could total as much as $100 billion.
PriceWaterhouseCoopers, which is working with over 100 companies, mostly in the UK but also in continental Europe, said on Sunday: "We're dealing with a large number of entities and therefore the claims could be as much as $100 billion.
"These claims are exceptionally complex and we anticipate a large amount of further work in dealing with (them)."
A significant amount of the claims arose as a result of guarantees issued by the parent company to its subsidiaries, the administrator said.
PwC said it had worked with administrators in other affiliates to understand Lehman's accounting system so a standard approach to the reconciliation of inter company balances could be agreed.
"If this can be achieved then it should reduce the likelihood of affiliates suing each other in pursuit of amounts that are owed between the different Lehman estates," it added.
Have fun with that, PwC, we'll pray for you.