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SEC Receiver Pomerantz: Dreier LLP to File for Bankruptcy
Mark Pomerantz, the SEC’s court-appointed receiver for the law firm Dreier LLP, has advised U.S. District Judge Miriam Cedarbaum of the SDNY that the firm will file for bankruptcy. Bloomberg reports that in a Dec. 11 letter publicly filed yesterday, Pomerantz stated that “I have advised counsel for the SEC and counsel for Mr. Dreier [...]
New York Magazine Profile on Dick Fuld and Lehman Bros.: “Burning Down His House”
New York Magazine has a very interesting and in-depth story on Dick Fuld and the collapse of Lehman Bros. entitled “Burning Down His House,” which asks whether Fuld “is the true villain in the collapse of Wall Street, or is he being sacrificed for the sins of his peers?”
“Germany’s Dumbest Bank” Raided by Prosecutors and Police Over Lehman Bros. Debacle
German state-owned bank KfW, in business for over 60 years, saw its Frankfurt headquarters raided yesterday by German prosecutors and police yesterday over “suspected criminal breach of trust,” The Guardian reports. The investigation is looking into whether the bank’s executives acted criminally in allowing KfW to transfer €319m (approximately $426 million) to Lehman Brothers on [...]
House Committee Sets up “Lehman/AIG Tipline”
Rep. Henry Waxman’s Committee on Oversight and Government Reform is “conducting an investigation into the collapse of Lehman Brothers and AIG and is interested in any information that may help further the investigation.” It has established the “Lehman/AIG Tipline” to gather confidential information. Visit the Lehman/AIG Tipline
Lawsuits Fly After Primary Fund “Breaks the Buck”
Several securities class actions have been filed against Reserve Management Co.’s Primary Fund, which reportedly became the first money-market mutual fund to ever expose retail clients to losses by “breaking the buck.” Although not guaranteed, money-market mutual funds shares historically remain at $1.00 per share. The Primary Fund’s problems reportedly resulted from its holdings of [...]
UK Pension Funds in Lehman Bros. Securities Class Action Weighing Options
The UK’s Lothian Pension Fund and the Northern Ireland Local Government Officer Superannuation Committee are getting a quick lesson in the complexities of U.S. securities class actions in today’s changing financial world. IPE reports that lawyers for the two UK pension funds, which are co-lead plaintiffs in the case against now-bankrupt Lehman Bros. concerning mortgage-backed [...]
Epiq Systems Hired for Lehman Bros. Chapter 11 Claims Administration
Epiq Systems Inc. announced today that it has been hired to handle the claims administration work in the Chapter 11 filing of Lehman Brothers Holdings Inc. (LEH). With assets of $639 billion, Lehman is easily the largest company ever to seek Chapter 11 protection according to figures reported in the Kansas City Star. By comparison, [...]
UK: Lord Falconer Predicts Litigation in England on Unprecedented Scale
In his keynote speech at the Legal Week Litigation Forum in London this morning, the former Lord Chancellor, Lord Falconer, predicted that the collapse of Lehman Brothers will soon lead to “litigation on a scale that we have not seen before.” He predicted that the Lehman bankruptcy and others would reverse the recent decline in [...]
What Happens to D&O Coverage if AIG Goes Under?
by Bruce Carton What happens to D&O coverage if AIG goes under? The short answer is that I don’t know and I’m looking for answers over at my Enforcement Action blog at Compliance Week. Please weigh in there if you have any insights.
SEC: Working to Ensure Customers of Lehman Bros. Broker-Dealer Sub. Not Affected
The SEC issued a statement last night that, together with the Treasury and the Federal Reserve, it is working with Lehman Brothers to address the issues that it faces. The SEC stated that in particular, it “is taking actions to ensure that customers of Lehman Brothers Inc., the U.S. regulated broker-dealer subsidiary of Lehman Brothers [...]