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September 16, 2008
More Info on Lehman Bros.
The second item on the Bankruptcy Court docket is the Declaration of the Chief Financial Officer of Lehman Bros., Ian T. Lowitt. This pleading gives a brief background on Lehman Bros and why it filed the chapter 11 case. You can access it here. Usually the reason for the filing is some unexpected event like some creditor trying to seize something or call a loan that is about to come due. Lehman Bros. filed due to a lack of liquidity according to Lowitt. You know this is a big case when you read this paragraph:
"The Company’s liquidity crisis prompted an emergency meeting on September 12, 2008, between the Debtor’s management, officials from the New York branch of the Federal Reserve Bank, the heads of major financial institutions, Treasury Secretary Henry Paulson, and SEC Chairman Christopher Cox. Government officials later indicated that emergency federal funding would not be forthcoming to stabilize Lehman Brothers and provide the liquidity needed for its operations."
The pleading did not disclose the amount of Lowitt's bonus for last year.
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