Monday, December 29, 2008
Must reading in today's Wall St. Journal is the article on the last days of Lehman Brothers; the title says it all: The Weekend That Wall Street Died. It reports how it was every firm for itself as Lehman Brothers collapsed; Lehman's CEO Fuld couldn't even get Bank of America CEO Lewis to return his phone calls for help! In a separate story, Alvarez & Marsal, the restructuring adviser for Lehman, reports that as much as $75 billion of Lehman's value was destroyed by Lehman's "unplanned and chaotic" bankruptcy filing in September. Billions could have been saved if an orderly and less-rushed process had been followed. Estimates are that unsecured creditors will receive 10 cents on the dollar. WSJ, Lehman's Chaotic Bankruptcy Filing Destroyed Billions in Value.