Keeping the lights on at Lehman
The administrators of Lehman Brothers International (Europe) discuss their role in handling the largest bankruptcy in corporate history, revealing how the process has raised questions about prime brokerage agreements, stock lending practices and the way institutions account for counterparty credit risk. By Christopher Whittall
More than a year after the collapse of Lehman Brothers on September 15, 2008, administrators for the group’s London-based broker-dealer subsidiary, Lehman Brothers International (Europe) (LBIE), are confident they are on the cusp of real progress.
On November 23, PricewaterhouseCoopers (PwC) rolled out a consensual scheme of arrangement, the Claim Resolution Agreement (CRA), which will help speed up the return of client assets held in trust. Assuming a sufficient number of secured creditors sign
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