September 18, 2008
Lehman Hearing Transcript
So it was really one of your typical "First Day" hearings on September 16. One of the motions was to give a "comfort order" to JP Morgan Chase, the bank that clears the checks and various securities going from here to there on a daily basis. Technically, when the chapter 11 is filed, whatever cash is in the bank at that moment and whatever securities are owned by the debtor are transferred to the bankruptcy estate. The bank should not be sending those funds to someone else without court permission or someday some sharp chapter 7 trustee will sue the bank to get the money back. Counsel for the bank was explaining the problem to Judge James Peck and stated "And then this morning, Your Honor, there was a smaller advance had to be made for fifty-one billion dollars." Anyway, the transcript of the hearing can be accessed here.
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