Lehman Never Actually Went Bankrupt (?)

I couldn't find a good Lehman pic
so how about "baby Ben Bernanke blows" instead?
Pic credit: Dealbreaker

On September 15, 2008 Lehman went down. Depending on which story you read, that same day or 3 days later came the $500 billion money market run. Shhh, we're imploding over here.

Let's throw in some ARSs just for fun (which didn't really hit until February of 2009). The LandAmerica victims and countless others can appreciate this line from Sense on Cents:

Why does a $190 million lawsuit receive scant coverage? Why does a $100 billion plus financial fraud pass below the radar screen?  With the exception of Bloomberg News, the scandal surrounding Auction Rate Securities receives very limited serious coverage.

Well, with figures the magnitude of those mentioned above, Sense on Cents is highly energized to publicize the scandal and the embedded conflicts in this fraud.

Bloomberg reports, Lehman Sued Over Conflict in Auction-Rate Securities:

June 9 (Bloomberg) – Lehman Brothers Holdings Inc. was sued by two companies seeking more than $190 million over claims the bankrupt investment bank misrepresented the risk of auction- rate securities and had a conflict of interest in their sale.

The complaints against Lehman Brothers, which filed the biggest bankruptcy in U.S. history last September, were filed in federal bankruptcy court in Manhattan. Ceradyne Inc. and Western Digital Corp. claim Lehman had a conflict of interest serving as underwriter and seller of the securities.

ARSs, ARSs, ARSs. It's a fucking party, ask the LandAmerica folks.

Anyway.

The storyline goes "Lehman was allowed to fail..." but was it really? Why are Yahoo message board wackos saying the Lehman bankruptcy was fake and Barclays actually tried to buy the carcass (unsuccessfully)? Well Barclays did, to some extent but we're talking bankruptcy, not liquidation or takeover. Let's remember the Yahoo nutjobs have been right before (Dendreon anyone?) before we rush to judgment.

Whatever. I wasn't there and neither were you so let's not wildly speculate.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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