David Kirkpatrick

December 30, 2008

The single biggest (quiet) story of 2008

Easily the bankruptcy of Lehman Brothers. Before and after this event the government threw money around like a drunk sailor on shore leave. If you had a hand out, the Fed put a cool billion right there in your sweaty palm.

Lehman? Left rolling in their own excrement and costing creditors something around $200B.

The way this entire financial meltdown has been handled is criminal. Just one more black mark on the legacy of the failed Bush 43 regime.

From the link:

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.

Lehman filed for bankruptcy protection in September after the U.S. government declined to bail it out and a frantic weekend of negotiations to save the investment bank failed.