Lehman creditors seek to probe firm - WSJ

[WhiteTara]

Source: reuters

NEW YORK, Oct 3 (Reuters) - Unsecured creditors of Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research, Stock Buzz) asked a court overseeing Lehman's bankruptcy proceedings for permission to investigate how the firm ran out of money, The Wall Street Journal reported on its website on Friday.

The group said that JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), which acted as a middleman between Lehman and other lenders, helped spark a liquidity crisis at Lehman before it filed Chapter 11 bankruptcy proceedings earlier this month, the Journal reported.

snip

"These assertions raised by the creditors' panel are unfounded conjecture," JPMorgan said in a statement released to the Journal. "We will address them at the appropriate time in bankruptcy court."

According to the court filing, about $17 billion in Lehman cash and securities were being held at J.P. Morgan as collateral, the Journal reported. In its claim, the creditors group alleges that J.P. Morgan "withheld $17 billion in excess assets" from Lehman Brothers "in the days just prior to the bankruptcy filing," the paper said.

The creditors say that refusing to make the assets available to Lehman might have contributed to Lehman's cash problems, the paper said.

Read more: http://www.reuters.com/article/bondsNews/idUSN0336744420081004

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just a bit more

it's going to be interesting to watch them tear each other apart. May they all land in jail.
:popcorn:

[aquart]

1. Very pleasant indeed.

Cheating the common man, one thing. But cheating rich men...they hire lawyers for pure spite.

That's how Bear Stearns wound up being fined $37 million several years ago. (Yes, I know that $37 million only amounted to two years' bonus for one executive but ...there's no "but." It was a sucky settlement.)

[Karenina]

8. IIRC, Joe Lewis lost 1B on Bear's belly-up

and lawyered-up mad as a wet cat. Any follow-up?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3023456

[defendandprotect]

2. More MIHOP ... ????

[dixiegrrrrl]

3. Seems so.

Story is that Bear Sterns and WaMU also victim of deliberate crashes.

The Bear Sterns story is in Vanity Fair ( onlne )
and WaMu issued popped up in the news last couple days.

And I am standing in a long long line to get my retirement money back from Lehman.
So the idea this was a planned take down and shake out does not thrill me.

[EFerrari]

4. This morning, the economist on Amy's show said as much

about Paulson's decision to let Lehman go down. There's video at the site: www . democracynow.org

[defendandprotect]

6. I have to be tuning in more to Amy Goodman ---

used to listen every morning ...

[EFerrari]

7. If you can't, there are transcripts and videos at her site.

:hi:

[defendandprotect]

5. Hadn't heard ALL of that ...!!

Story is that Bear Sterns and WaMU also victim of deliberate crashes.

The Bear Sterns story is in Vanity Fair ( onlne )
and WaMu issued popped up in the news last couple days.


Sounds like the story of CHASE and its Depression-producing "rumors" again --

See article posted at DU recently on this --

And I am standing in a long long line to get my retirement money back from Lehman.
So the idea this was a planned take down and shake out does not thrill me.

!!! Presume new owners aren't smoothing way on this -- ?
And many of us may soon be facing same thing ---
We have some funds with the corrupt HSBC ...of notorious note --

[The Backlash Cometh]

9. We'll never end the real result.

The culprits will just pay someone off to protect their secrets.