Replies to post #80181 on Lehman Brothers Financial SA (LEHNQ)

[Docsavag]

It’s a shell game, much the same as it was with WaMu. Hell, both the FDIC and JPM each had $27B in bogus claims against the Bankruptcy which were eventually dropped, It’s really criminal, but no one holds those who make such false claims accountable.

[toogoodfella]

Here is an excerpt:

On September 15, 2008, Lehman Brothers filed for bankruptcy. With $639 billion in assets and $619 billion in debt, Lehman's bankruptcy filing was the largest in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide.
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639 billion in assets, 619 billion in debt, this is from an article though.
So you are not suppose to rely on this numbers but it must be good enough to give you some idea.

let’s say if they sold some business for 300B before The POR was written, and this business have a liability of 280B. Lehman will get a proceed of 20B.

Now, the remaining asset will be 639B minus 300B equals 339B, plus the 20B proceeds, total remaining Asset will be 359B.

But if you will look at the liability:
619 - 280 = 339B

359-339= 20B equity

Equity did not Change from:

639-619= 20B

These numbers are just example scenarios.